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THESE BIG BUSINESSES HAVE BEEN INFECTED BY COVID-19

For most business owners, COVID-19 came like a theft in the night. It was one of the risk factors that was not anticipated for businesses that depend on human interaction to thrive. Those in the airline, restaurant, hospitality, and tourism sectors have been hit hard by this pandemic, and although they've been able to successfully transition to the new online way of conducting business, we’ll be taking a look at big businesses that have been drilled to the ground by the impact of the coronavirus.

  1. JC Penny: JC Penny is one of the big guns in the retail industry. Based in Texas, the department stores is also one of those hit hardest by the covid-pandemic and prevention regulations of staying at home. The department before the coronavirus hit was already struggling with debt, and the pandemic served only to escalate its precarious position. Hence, on the 15th of May 2022, it filed for bankruptcy, having been weighed down by a huge 4.2 billion dollar debt.
  2. Hertz: Hertz, a subsidiary of Hertz Holdings in Florida, is a car rental service with over 90 years of experience. With most people staying at home and movement at its minimal, the company has suffered major losses, and on the 22nd of May, it filed for chapter II bankruptcy in hopes of restructuring its estimated 17 billion dollar debt.
  3. ALDO Group: This Canada based shoe retailer had before covid-19 been enjoying a booming business in over 3,000 stores worldwide before COVID-19. On May 7, 2020, however, it filed for creditor protection in order to restructure to adequately adjust to the new economic realities.
  4. Whitining Petroleum: This is a major oil and gas company with operations concentrated in Colorado and North Dakota, has said it would be filing for bankruptcy to aid in its restructuring plans. The decision came as a consequence of the recent drop in oil barrel prices and its demand during this COVID-19 period. The company hopes to convert over 2.3 billion dollars in debt into equity for its restructuring program. It is currently still financially afloat to stay in business, although its shares seem to have fallen to a startling 1 dollar, in contrast to 150 dollars, which has been the value publicly traded since 2015.
  5. Rubie’s Costume Company: Rubies is the largest costume producing company in the world. For over 65years, the company has been thriving in sales, which have since declined drastically owing to the closure of most retail stores, which were their major consumers. The company had no choice but to file for bankruptcy on the 30th of April, 202.
  6. Virgin Australia is one of the largest airlines in Australia and was co-founded by the CEO of Virgin Group; Richard Branson. The company features as one of those hit hardest by the pandemic following the restriction of inter-country movement which is why on the 21st of April 2020, the company entered voluntary administration an equivalent of bankruptcy.