In the first half of the year, the number of bankruptcy applications increased by more than a quarter compared to the same period last year.
The coronavirus pandemic has created a wave of corporate bankruptcies in the United States. Thousands of retailers, energy companies, and other businesses have fallen victim to the recession caused by the pandemic.
In the first half of the year, more than 3,600 companies filed for debt protection under the US Bankruptcy Code. According to the law firm Epiq Global, this is 26 percent more than in the same period last year.
Only in June, when there were signs that the economic recovery was slowing amid a surge in coronavirus cases, did the number of bankruptcy filings increase by 43 percent, the company found.
Chuck E. Cheese, Hertz, J. Crew, J. C. Penney, and Neiman Marcus are just a few well – known companies that declared bankruptcy this year after falling sales during the pandemic.
However, financial experts believe that the worst is yet to come, and retailers and oil companies are particularly vulnerable to an unprecedented decline in economic growth over several decades.