With nationwide temporary closures, mandatory stay-at-home orders, and social distancing requirements, the Covid-19 pandemic has been tough on businesses. Unfortunately, some of them may not be able to withstand the devastating blow that the pandemic has created. That being said, here are five companies that might not make it out of the pandemic alive.
Sears was already on the brink of closure prior to the coronavirus outbreak, so it comes as no surprise that this brand might not survive the pandemic. In fact, Sears has been continuously and permanently closing stores for years, even after emerging from bankruptcy some time ago. By the end of February it was down to 182 stores. Meanwhile, Sears announced in early April that it would close all its locations through at least April 30 in response to the coronavirus outbreak. Whether those locations will reopen after the pandemic passes remains to be seen.
2. NEIMAN MARCUS
The Neiman Marcus Group was the first major retailer to topple during the current pandemic. As a result, the retail giant filed for bankruptcy in early May. In a letter to customers, Geoffroy van Raemdonck, CEO of Neiman Marcus Group Inc., noted that the company would not be liquidating and will reopen stores once it’s safe to do so. “This is simply a process that allows our company to alleviate debt, access additional capital to run the business during these challenging times, and emerge a stronger company with the ability to better serve you and continue our transformation over the long term,” he said.
3. NORWEGIAN CRUISE LINE
It should come as no surprise that cruise ships are struggling during the current pandemic. After all, many people who were traveling on them ended up contracting COVID-19. Not only that, but cruise ships are known for being filthy. Plus, all U.S. cruises were hit with a no-sail order. That being said, Norwegian Cruise Line, headquartered in Miami, said in a May 5 filing that there was strong doubt about the company’s ability to continue in the wake of the coronavirus pandemic. Prior to the crisis, Norwegian Cruise Line’s stock traded at more than $50 per share. It’s currently trading at less than $13 per share.
4. GOLD’S GYM
With mandatory stay-at-home orders and bans on gatherings of more than 10 people, many folks have started working out at home. As a result, many gyms have suffered. And, Gold’s Gym is no exception. The gym filed for bankruptcy in early May and permanently closed 30 company-owned locations amid the coronavirus pandemic, although its CEO Adam Zeitsiff reassured customers that the gym would eventually reopen. In fact, some locations have already started reopening with enhanced safety measures in place. But, the question that remains is, will customers feel safe enough to be in close proximity to other gym customers or will they continue to play it safe at home? Time will tell.
5. AMC THEATERS
According to 24/7 Wall St., AMC Theaters was reportedly considering entering bankruptcy in April. They have avoided it so far and have actually turned their attention to raising much-needed funds through a private placement debt offering. Unfortunately, with AMC Theaters closed since mid-March, ticket sales have been $0. And, with no money rolling in, things are starting to look pretty bleak. But, there is one possible solution: convert all or some of their locations to drive-in theaters. Believe it or not, drive-in movie theaters have been making a comeback due to the coronavirus pandemic, and this could be just what AMC Theaters needs to turn business around.