In Pics | 14 major companies that filed for bankruptcy in 2020

SUMMARY

2020 has been a brutal year for businesses, so much so that the volume of bankruptcies this year has surpassed that of 2008. From the travel and hotel space to the energy sector, businesses across industries suffered for months as the COVID-19-induced lockdown put brakes on economic activities across the world. However, retailers selling non-essential goods have been the worst-affected with many of these names emerging among the biggest bankruptcies of 2020. As per S&P Global Market Intelligence, 610 firms have filed for bankruptcies as of December 13, the highest since 2012. Retailers like J.C. Penney, Neiman Marcus, and J.Crew, car rental giant Hertz, mall operator CBL & Associates Properties are some of the names that have been listed in Fortune’s list of ‘14 of the biggest bankruptcies of 2020'. The 14 bankruptcies happen to be from the US as the valuations of liabilities remain higher than those of others. Here’s a look at these companies and their liabilities, as mentioned by Fortune:

By CNBC-TV18Dec 24, 2020 1:39:51 PM IST (Updated)

Frontier Communications: With liabilities worth $17.1 billion, the phone and internet service provider tops the list. The firm succumbed to massive debt amounts and investments in fiber infrastructure that came in extremely late. The company, however, may emerge from Chapter 11 soon.

Neiman Marcus: Luxury department store company Neiman Marcus is second on the list with liabilities worth $5.3 billion. Falling sales numbers and brands getting more aggressive on their strategy to sell via their own stores and sites meant tough survival for the company. While the company has emerged from bankruptcy protection, the situation remains more or less the same.

Diamond Offshore Drilling: Third on the list is Diamond Offshore Drilling with liabilities of $6.3 billion. Demand for oil exploration at sea suffered as crude oil prices witnessed a record fall amid the COVID-19-induced lockdown which brought the economic activities to a standstill.

Tailored Brands: With $1.5 billion worth of liabilities, retail firm Tailored Brands is fourth on the list. The company, which was still struggling due to its 2014 acquisition of Jos. A. Bank, was hit further with a massive fall in sales. The parent company of suit purveayor Men's Wearhouse had millions of men working from home during the pandemic.

The McClatchy Co.: The newspaper company too has liabilities worth $1.5 billion. The firm, which had been struggling to survive due to its declining print subscriptions for years, finally filed for bankruptcy in February.

CBL & Associates Properties: The mall operator stood with more than $1 billion in liabilities. While the company was already struggling due to the declining shopper visits, the virus outbreak made survival even more difficult.

24 Hour Fitness Worldwide: With gyms being among the first businesses to be shut and still awaiting authorities’ nod in several parts to reopen, firms like 24 Hour Fitness have come under massive stress. 24 Hour Fitness has liabilities worth more than $1 billion.

Hertz: Car rental giant Hertz too has over $1 billion in liabilities. The company, that had already been struggling, found it hard to be afloat after the virus pushed travel to a halt. The firm was forced to restructure its debt.

Quorum Health: The operator of 24 hospitals is another firm with liabilities worth more than $1 billion. The company found it difficult to perform elective procedures amid COVID and struggled with the already heavy debt load. It exited Chapter 11 in June.

Retailers J.C. Penney, J.Crew, Ascena Retail (Ann Taylor), Stage Stores, and Stein Mart had already been struggling for long and COVID-19 only made things worse for them.