It’s inevitable that the Coronavirus would drive up bankruptcies with stores closed, workers locked down in their homes, and 400,00 Americans dead.
This Statista.Com chart shows the depth of the Coronavirus Pandemic financial impact as 244 corporations with liabilities larger than $50 million dollars have already declared bankruptcy. This is the second largest bankruptcy count since 2009 during the Great Recession. We fear the total tally could double this as the Coronavirus is still reeking havoc across the country in waves.
This is a relatively small number of businesses being counted so far, only those with debt exceeding $50 million dollars. This tally across America totally misses the 100,000+ small businesses, restaurants, etc. that have gone out of business, but with far smaller debts than $50 million.
Keep an eye out for rising med-size business bankruptcies, small business bankruptcies, and personal bankruptcies who haven’t seen attorneys or gotten a court date due to continued Covid-19 Pandemic lockdown.
My past experience reminds me that businesses who declare bankruptcy leave a domino effect behind seriously impacting the finances of vendors, landlords, advertising, employees, and taxes that go unpaid in bankruptcy.
Graphics provided by Statista.Com