(OPINION) Michael Snyder – The U.S. economy was supposed to be turning a corner by now, but instead, it looks like we are headed for an exceedingly painful winter. All over the country, big companies are laying off thousands of workers, and in some cases, the numbers are even larger than that.
As you will see in this article, Disney just announced that they will be laying off tens of thousands of workers, and the airline industry is warning that 100,000 workers could soon permanently lose their jobs if the federal government doesn’t bail them out. Meanwhile, we have been seeing businesses fail at a pace that is absolutely stunning.
According to the Wall Street Journal, this year we are on pace to set new records for retail stores closings, retail bankruptcies, and retail liquidations… Retail store closings in the U.S. reached a record in the first half of 2020 and the year is on pace for record bankruptcies and liquidations as the Covid-19 pandemic accelerates industry changes, particularly the shift to online shopping, according to a report on the downturn’s severity.
Apparel retailers have been hit particularly hard during this pandemic, and it has been extremely sad to see some of the most iconic brands in the entire industry reach the end of the line… Among the notable companies that went belly-up over the summer are Lord & Taylor and its subsidiary, Le Tote; Tailored Brands, which is the parent company of Men’s Wearhouse and Jos. A. Bank; and Ann Taylor’s corporate parent Ascena Retail Group.
But it isn’t just the retail industry that is being utterly devastated. According to Zero Hedge, there has been a “40% eruption in bankruptcy filings” in New York City so far in 2020, and one bankruptcy lawyer is warning that “there will be an avalanche of bankruptcies” as we approach the end of the year… While Wall Street panic buys stocks again, on hopes
Washington can pass the next round of much-needed economic stimulus, the broader commercial real estate market continues to implode and nowhere more so than the epicenter in New York City, where nearly 6,000 business closures, has resulted in a 40% eruption in bankruptcy filings across business districts of all five boroughs this year, reported Bloomberg.
Al Togut, a bankruptcy lawyer who has handled insolvencies for small firms to mega-corporations, said, “by late fall, there will be an avalanche of bankruptcies … When the cold weather comes, that’s when we’ll start to see a surge in bankruptcies in New York City.” So does that sound like things will be getting better or does that sound like things will be getting worse? READ MORE
