Wall Street bekæmpede med succes bjørnemarkedet ansporet af COVID-19 coronavirus-udbruddet. Men det amerikanske økonomiske opsving er langt fra fuldstændigt, og virussen fortsætter med at fremkalde konkursansøgninger over hele landet.
Forskning fra investeringsbanken Jefferies viser, at store virksomheders konkurser mere end tredobledes år for år mellem juli og august 2020, og at store virksomheders konkurser var mere end fordoblet frem til slutningen af august. Ved udgangen af 2020 nåede virksomhedskonkurser i USA det højeste niveau i 10 år.
2021 har ikke været så slemt takket være et økonomisk opsving bygget på optrappede vaccinationer – de 183 ansøgninger frem til 30. april i år var færre end de 207 ansøgninger til dette punkt i 2020, siger S&P Global. Alligevel tager COVID-19 helt klart sit præg.
I mange tilfælde har COVID simpelthen været dråben, der knækkede kamelens ryg. Især detailbranchen har udholdt et rystende år plus. Mange af disse kæder var allerede overbelastet med gæld og havde lidt under langsigtede fald på grund af skiftende smag og amerikanernes svulmende indførelse af e-handel og blev til sidst skubbet ud over kanten.
Men eksplosionen i konkurser har ikke været begrænset til detailhandlen. COVID-19 har tvunget virksomheder fra flere brancher til at søge kapitel 11-konkursbeskyttelse og andre former for nødhjælp. Energisektoren, hvor oliefaldene i 2014-16 svækkede adskillige efterforsknings- og produktionsvirksomheder, oplevede i flere tilfælde den nedgang i olieefterspørgslen, der var udløst af coronavirus, afslutte jobbet. Nogle få økonomisk vaklende virksomheder i restaurant- og underholdningsindustrien er også kollapset.
Bare husk:Konkursansøgninger er ikke altid "slutningen."
I mange tilfælde hjælper kapitel 11-omorganiseringer og andre manøvrer virksomheder med at slippe af med betydelige mængder af gæld, hvilket giver dem mulighed for at fortsætte driften, mens de forsøger at finde en ny vej frem. Faktisk inkluderer vores seneste opdatering af denne liste en række virksomheder, der ansøgte om kapitel 11-konkursbeskyttelse i 2020, men som siden er opstået med en anden lejekontrakt på livet.
Her er 32 virksomheder, hvis konkursansøgninger kan lægges op til COVID-19-udbruddet. I de fleste tilfælde udviste disse virksomheder allerede tegn på økonomisk tvang - coronavirussen tvang blot deres hænder. Heldigvis var konkursen ikke enden for flere af disse virksomheder.
Antal ansatte og lokationer pr. konkursindgivelsesdatoen. Alle andre data er pr. 26. juli, medmindre andet er angivet.
Washington Prime Group (WPG, $1,65), en shoppingcenter-ejendomsinvesteringsfond (REIT), beskriver sig selv som en "anerkendt leder inden for ejerskab, ledelse, erhvervelse og udvikling af detailejendomme." Virksomheden siger, at dets ejendomme tiltrækker mere end 400 millioner gæster hvert år.
2020 var dog alt andet end et normalt år, og antallet af gæster styrtdykkede.
Pandemien tvang midlertidige lukninger af indkøbscentre og butikker og holdt kunderne hjemme. Detailhandlere pressede på for lejelettelse og nogle lukkede helt ned. Det satte igen pres på detailudlejere som WPG.
Washington Prime Group ansøgte om kapitel 11-konkursbeskyttelse den 13. juni. Dens forslag vil få 950 millioner dollars af WPGs gæld omstruktureret, mens kreditorerne har accepteret 100 millioner dollars i finansiering for at give virksomheden mulighed for at operere under konkursbehandlingen.
Mens den omorganiserer, siger Washington Prime, at det vil være business as usual:
"Virksomheden forventer, at driften fortsætter i det ordinære forløb til gavn for vores gæster, lejere, leverandører, interessenter og kolleger," siger WPG.
Papirkilde , som blev grundlagt i 1983, sælger lykønskningskort, invitationer, gavepapir, papirhåndværkssæt, håndværksartikler og relaterede produkter. De fleste af dets butikker blev tvunget til midlertidigt at lukke under pandemien, hvilket satte presset på forhandleren.
Virksomheden søgte angiveligt lejepauser fra udlejere og strakte betalingsbetingelser med leverandører. Med mere end 100 millioner dollars i gæld og 36 millioner dollars i årlige leasingomkostninger blev Paper Source imidlertid tvunget til at ansøge om kapitel 11-konkursbeskyttelse. Planen var at lukke 11 butikker, men fortsætte med at køre de resterende lokationer og dets e-handelsaktiviteter.
I maj sagde Elliott Investment Management, som ejer Barnes &Noble, at det ville erhverve Paper Source, hvilket giver det den nødvendige finansiering til at forlade Chapter 11.
Mens mange detail-konkurser kan kridtes op til pandemien, skilte denne sig ud for sin dårlige optik.
Snesevis af lykønskningskortleverandører rapporterede, at Paper Source havde afgivet usædvanligt store ordrer (nogle angiveligt firedobler den normale størrelse) lige før indlevering. Derudover blev virksomhedsledere udbetalt $1,47 millioner i bonusser under pandemien. Efter at virksomheden indgav en konkursbegæring, søgte virksomhedens ledere om yderligere 1 million USD i bonusser – selv da hundredvis af små leverandører ikke blev betalt.
Mange pizzakæder trivedes under pandemien. Pizza har altid været en populær takeaway-mulighed, og med mange pizzakæder, der allerede har specialiseret sig i levering, var de perfekt positioneret til en lockdown.
Cici'er var anderledes. Den Texas-baserede kæde er en pizzabuffetrestaurant. Og mens siddende restauranter kæmpede, blev buffet-restauranter presset til det punkt, at mange måske ikke kommer sig.
COVID-19 viste sig at være dødelig for kæden. Moderselskabet Cici's Holdings oplevede sin omsætning falde med mere end 50 % i 2020. Med henvisning til pandemiens "uforudsigelige og hidtil usete omfang" ansøgte virksomheden om kapitel 11 konkursbeskyttelse den 25. januar med mellem 50 og 100 millioner dollars i forpligtelser. .
Samtidig sagde D&G Investors, som købte Cicis gæld i december sidste år, at de ville købe virksomheden i en gæld-for-aktie-handel. Cici'er dukkede hurtigt op fra kapitel 11 i marts 2021.
Minnesota-baserede Christopher &Banks sluttede sig til den lange liste af tøjforhandlere, der er blevet presset ud i konkurs af pandemien.
Kvindetøjsfirmaet indgik kapitel 11-konkursbeskyttelse den 14. januar, som følge af "økonomisk nød som følge af pandemien og dens fortsatte indvirkning." Christopher &Banks stod over for en mangel på gangtrafik i indkøbscentre, ja, men det led også af et skift mod mere afslappet beklædning, da mange mennesker begyndte at arbejde hjemmefra.
Ude af stand til at finde en køber, sagde selskabet i januar, at det planlagde at lukke sine 400 butikker fordelt på 44. Men i marts oplyste en føderal konkursdomstol grønt lys for 12,7 millioner dollars aflæsning af sin e-handelsvirksomhed til ALCC, et datterselskab af Hilco Merchant Resources. Butikslukningssalg – inklusive inventar (aldrig et godt tegn) – startede med det samme.
Houston-baserede FHC Holdings (FRANQ, $0,20), forælder til Francesca's, søgte kapitel 11 om konkursbeskyttelse den 3. december. Sælgeren af boutique-dametøj havde angiveligt kæmpet i flere år, men pandemien viste sig at være uoverkommelig. Med halvdelen af sine butikker placeret i indkøbscentre, som blev ramt af shit-downs og massive fald i gangtrafikken, oplevede Francesca's salg i første kvartal falde med 50 %.
Virksomheden har forsøgt at indhente onlinesalg og markedsføring til en yngre 18-35-demografisk gruppe. Det udsatte også næsten 37 millioner dollars i lejebetalinger. Intet af dette var nok til at afværge det uundgåelige. I december sagde virksomheden, at den planlagde at lukke 140 af sine 700 butikker. Det føjede senere yderligere 97 butikker til lukningslisten.
I begyndelsen af februar blev Francesca's solgt for 18 millioner dollars til en gruppe bestående af TerraMar Capital, Tiger Capital Group og SB360 Capital Group. Med en ny aktiv-baseret revolverende kreditfacilitet på $25 millioner, planlægger Francesca at holde mindst 275 butikker åbne sammen med sin e-handelsvirksomhed og dets Houston-hovedkvarter.
Guitar Center, den største forhandler af musikinstrumenter i USA, søgte kapitel 11 konkursbeskyttelse den 21. november 2020.
Guitar Center blev grundlagt i 1959 og havde 269 detailhandelssteder, de fleste af dem i indkøbscentre - som shoppere undgik under coronavirus-pandemien. Virksomheden havde været profitabel og rapporterede 2,3 milliarder dollars i omsætning i 2019, men det rapporterede, at salget i butikkerne "faldt" i marts, april og maj. De kom sig aldrig helt. Selv med onlinesalg, der hjalp med at opveje den tabte omsætning, var salget stadig faldet med næsten 20 % sammenlignet med 2019.
Kombineret med den resterende gæld fra en private equity-overtagelse i 2014 var virksomhedens IOU'er steget til 1,3 milliarder dollars.
Guitar Center kom hurtigt ud af kapitel 11-konkursbeskyttelsen og annoncerede en godkendt reorganiseringsplan den 17. december. Planen udslettede mere end 800 millioner dollars i gæld.
Ejendomsinvesteringsfond CBL &Associates Properties (CBLAQ, $0,13) ansøgning om kapitel 11-konkursbeskyttelse den 1. november. Pandemien, der decimerede fysiske butikker, var også dårlige nyheder for virksomheden, som ejer eller medejer mere end 100 indkøbscentre. Da ankerlejere som JCPenney gik konkurs, og andre lejere ude af stand til at betale husleje, begyndte CBL Properties at advare investorer om, at de var i problemer.
I sin konkursansøgning foreslog CBL-ejendomme en aftale, der ville give usikrede obligationsejere en 90%-andel i virksomheden til gengæld for at eliminere omkring 1,4 milliarder dollars i gæld.
I april rapporterede Bloomberg, at "CBL &Associates Properties Inc. indgav en ændret kapitel 11-plan, der inkorporerer et forlig med dets vigtigste långivere, hvilket flytter indkøbscentrets operatør et skridt nærmere rettens godkendelse af dets omorganisering."
FIC-restauranter – ejer af den populære Friendly's Restaurants-kæde – anmodede også om kapitel 11-konkursbeskyttelse den 1. november med henvisning til den "katastrofale indvirkning af Covid-19" på virksomhedens forretning.
Den ikoniske østkystrestaurant og iskæde havde søgt om Chapter 11 tidligere i 2011 og havde engang så mange som 850 steder, men det var blevet reduceret til 50 virksomhedsejede og 80 franchisesteder. Virksomheden har angiveligt gjort fremskridt i en turnaround i løbet af de sidste to år forud for pandemiens afbrydelse. Selvom det havde vokset sin takeaway-virksomhed, var Friendly's primært en sidderestaurant, hvilket gjorde den særligt sårbar.
Virksomheden rapporterede, at det havde tilstrækkeligt med kontanter til rådighed til at fortsætte driften for at sikre en uafbrudt overgang til en ny ejer, og alle lokationer ville forblive åbne i mellemtiden.
I januar blev Friendly's solgt til Amici Partners Group for knap 2 millioner dollars. Amici planlægger at fortsætte med at drive Friendly's, forbedre menuen (herunder yderligere ismuligheder) og forbedre restaurantens onlinebestillingsmuligheder.
Forhandler Century 21 , som blev grundlagt i Brooklyn tilbage i 1961 og har 13 lokationer i det nordøstlige USA, er en af en række stormagasinkæder, der længe havde kæmpet med skiftet til e-handel, før COVID lagde pres på.
Forhandleren smed endelig håndklædet i ringen i september, men anmodede om kapitel 11 konkursbeskyttelse, efter at dets forsikringsselskab nægtede at udbetale 175 millioner dollars i afbrydelsesforsikringsbetalinger, som Century 21 ansøgte om.
CEO Raymond Gindi påpegede, at "forsikringspenge hjalp os med at genopbygge efter at have lidt den ødelæggende virkning af 9/11," med henvisning til lignende udbetalinger modtaget i kølvandet på terrorangrebene den 11. september 2001, forbundet med Century 21's placering overfor. World Trade Center. Men mange forretningsafbrydelsespolitikker dækker typisk kun tab i tilfælde af direkte fysisk skade på en virksomhed og har derfor ikke dækket COVID-relaterede tab.
I dette tilfælde vil Century 21 ikke bruge konkurs til at omorganisere, men vil i stedet "afvikle sin detaildrift" og lukke sine resterende lokationer.
I en ironisk drejning var det mest værdifulde aktiv, Century 21 havde tilbage for at hjælpe med at tilbagebetale kreditorer, et krav på 175 millioner dollars mod virksomhedens forretningsafbrydelsesforsikring på grund af COVID-19. Selskabet solgte dette krav til en ikke-oplyst køber i december.
Florida-baserede discountvarehuskæde Stein Mart har været i drift siden 1908. I den tid har den udvidet sig fra sin første butik i Mississippi på tværs af 30 forskellige stater. Det driver nu 279 lokationer samt et e-handelswebsted.
Kæden havde dog bejlet til en ældre demografisk person - en, der ikke har skyndt sig at vende tilbage til butikkerne, da pandemiske lockdowns blev ophævet i det samme antal, som yngre shoppere har. Virksomheden var allerede i problemer og udforskede privatisering i 2018, men coronavirus-pandemien gav det et dræbende slag.
Stein Mart indgav kapittel 11-konkurs den 12. august. Virksomheden lancerede likvidationssalg og vil permanent lukke alle sine murstens-og-mørtel-lokationer.
I december betalte Retail Ecommerce Ventures (REV) 6 millioner dollars for Stein Marts intellektuelle ejendom, inklusive private label-mærker og kundedata. REV har specialiseret sig i at opkøbe kæmpende mærker for at omplacere dem til onlineforretning. Virksomheden relancerede Stein Mart som en onlinebutik tidligere på året.
California Pizza Kitchen har serveret tærter i californisk stil med friske, sæsonbestemte ingredienser siden 1985. Den privatejede kæde har klaret mange kriser siden dengang, men at blive tvunget til midlertidigt at lukke steder på grund af coronavirus-pandemien var katastrofalt. I modsætning til andre pizzakæder, der fokuserer på levering, er CPK afhængig af spisning i restauranten for 80 % af sin omsætning.
Den 30. juli meddelte California Pizza Kitchen, at det ansøgte om kapitel 11-konkursbeskyttelse. Virksomheden forbliver i drift, selvom nogle urentable lokationer vil blive lukket. De fleste CPK-restauranter er nu genåbnet for udendørs spisning og levering, og nogle spisestuer begynder også at åbne. Virksomheden har også solgt måltidssæt, drinks og friske råvarer gennem sit CPK-marked.
CEO Jim Hyatt tilbød denne kommentar, da konkursansøgningen blev annonceret:
"Den hidtil usete indvirkning af COVID-19 på vores operationer skabte helt sikkert yderligere udfordringer, men denne aftale fra vores långivere demonstrerer deres forpligtelse til CPK's levedygtighed som en igangværende virksomhed. Gennem hele denne proces vil vi fortsætte med at levere det samme innovative, Californiske-inspirerede køkken, som vi har tjent i over 35 år."
I november meddelte California Pizza Kitchen, at det var på vej ud af konkursbeskyttelse. Virksomheden kastede 220 millioner dollars i gæld og har lånt 177 millioner dollars i kapital for at udvide og fokusere på en ny "Cali health"-menu. Uden planlagte tilbagebetalinger på kort sigt har California Pizza Kitchen et pusterum til at komme på fode igen.
Du genkender muligvis ikke navnet Skræddersyede mærker , men sandsynligvis kender du nogle af de tøjforhandlere, som virksomheden ejer, herunder Men's Warehouse, K&G Superstores, JoS. A. Bank og den canadiske tøjmager Moore's Clothing for Men.
Tailored Brands var allerede i nød på grund af høj gæld, som var en del af deres 2014-køb af JoS. En bank. Da coronavirus-pandemien ramte, stod virksomheden over for et dobbelt væld af lukkede butikker og trenden at arbejde hjemmefra, der skabte efterspørgsel efter jakkesæt og formelt arbejdstøj. Det resulterede i, at omsætningen for kvartalet, der sluttede 2. maj, faldt med over 60 %.
Den 23. juli indgav Tailored Brands kapittel 11 konkursbeskyttelse. "Mens vi løbende har evalueret og forbedret vores måder at arbejde på, gjorde COVID-19 det klart, at vi var nødt til at tilpasse os yderligere og udvikle os," sagde virksomheden.
Tailored Brands aktie blev afnoteret i august. I december meddelte det, at det med succes havde omstruktureret som et privatejet firma. I februar begyndte det at åbne nye "Next Gen" Herrelager-butikker. Den 5. marts meddelte virksomheden, at det havde lukket $75 millioner i finansiering for at fortsætte med at fremme sine strategiske planer, herunder at åbne flere af Next Gen-butikkerne.
Grundlagt i 1818, eksklusiv tøjforhandler Brooks Brothers pralede med at klæde 40 ud af 45 præsidenter i USA. Brooks Brothers overlevede borgerkrigen, første verdenskrig, den store depression og anden verdenskrig, men COVID-19-pandemien viste sig for meget. Virksomheden indgav en konkursbegæring den 20. juli.
Det privatejede firma, som er et af de sidste tilbageværende tøjmærker, der rent faktisk fremstiller nogle af sine produkter i USA (det har faciliteter i New York, Massachusetts og North Carolina), havde forud for pandemien overvejet at sælge sig selv. Business casual var ved at falde af mode, huslejerne var høje, og varehuskunder som Macy's (M) havde det svært.
Pandemien lukkede dog ikke kun butikker og fremskyndede et skridt hen imod "athleisure"-tøj, den kom også i vejen for ethvert potentielt salg:
"Under denne strategiske gennemgang blev Covid-19 enormt forstyrrende og tog en vejafgift på vores forretning," skriver virksomheden.
I september 2020 blev Brooks Brothers solgt til indkøbscenteroperatøren Simon Property Group (SPG) og licensfirmaet Authentic Brands Group for 325 millioner dollars gennem et driftsselskab kaldet SPARC Group. Som en del af aftalen blev køberne enige om at holde 125 Brooks Brothers-detaillokationer åbne. SPARC Group vil administrere alle Brooks Brothers' aktiviteter, herunder engros-, detail- og e-handel.
Sur La Table , en privatejet forhandler med speciale i luksuskøkkenudstyr og madlavningskurser i butikker, erklærede Chapter 11 konkurs den 8. juli.
Selskabets 121 amerikanske butikker blev ramt af lukninger, og selskabet siger, at dets konkursansøgning er "et resultat af de økonomiske konsekvenser af COVID-19-krisen." Selvom lokationer var begyndt at genåbne, var det for sent at vende forretningen.
På det tidspunkt sagde Sur La Table, at det planlagde at lukke 51 lokationer permanent. Og 20 % af virksomhedens personale blev permanent afskediget i juni.
I august blev Sur La Table købt for næsten 90 millioner dollars af et partnerskab mellem Marquee Brands og CSC Generation. I september blev det annonceret, at i alt 73 lokationer ville lukke, og nye ejere fortsætter med at drive 55 butikker.
Skiferfracking naturgas pioner Chesapeake Energy (CHK, $55,18) kollapsede til sidst under den yderligere belastning af pandemien og indgav en ansøgning om kapitel 11-konkursbeskyttelse den 28. juni.
Chesapeake kæmpede med kombinationen af lave naturgaspriser og et bjerg af gæld – 9,5 milliarder dollars ved udgangen af 2019. Faldende efterspørgsel efter brændstoffet, da fabrikkerne lukkede sammen med et kollaps i naturgaspriserne, der startede i februar, viste sig at være for meget. meget for Chesapeake at overvinde. I første kvartal af 2020 tabte virksomheden $8,3 milliarder og var nede på kun $82 millioner i kontanter ved udgangen af marts.
Chesapeakes administrerende direktør beskrev strategien for at omstrukturere sin virksomhed, primært ved at reducere den akkumulerede gæld, der trak den ned:
"Ved at eliminere omkring $7 milliarder af gæld og adressere de gamle kontraktlige forpligtelser, der har hindret vores præstationer, positionerer vi Chesapeake til at udnytte vores mangfoldige driftsplatform og dokumenterede resultater med at forbedre kapital og driftseffektivitet og teknisk ekspertise. Med disse demonstrerede styrker, og fordelen ved en passende størrelse kapitalstruktur vil Chesapeake være unikt positioneret til at komme ud af Chapter 11-processen som en stærkere og mere konkurrencedygtig virksomhed."
I februar forlod Chesapeake Energy konkursbeskyttelsen i kapitel 11 efter at have fyret 15 % af dets personale (220 arbejdere), fjernet 7,7 milliarder dollars i eksisterende gæld og rejst 1 milliard dollars i ny gæld. Selskabet siger, at det planlægger at lade sin olieproduktion falde med fokus på naturgasfelter i Louisiana og det nordøstlige. Det sigter også på at bruge $700 millioner til $750 millioner om året på nye projekter, som det vurderer kunne generere $400 millioner om året i frit cash flow.
CEC Entertainment – bedst kendt som moderselskab for pizza- og børneunderholdningsrestaurantkæden Chuck E. Cheese – indgav en ansøgning om kapitel 11-konkursbeskyttelse den 25. juni.
Corona-pandemien havde en dramatisk indvirkning på virksomhedens forretning. Kvartalet, der slutter i marts, er typisk virksomhedens travleste, men samme butikssalg faldt med 21,9 % år-til-år. Selv med sin Peter Piper takeaway-kæde, der tilbyder pizza to go, kunne CEC Entertainment ikke overvinde tabet af forretning fra lukningen.
Men den 30. december meddelte CEC Entertainment, at det var på vej ud af konkursbeskyttelse. Efter proceduren havde virksomheden elimineret 705 millioner dollars i gæld og kunne prale af mere end 100 millioner dollars i likviditet.
CEC Entertainment planlægger at fortsætte med at genåbne sine restaurantsteder, så længe "det er sikkert at gøre det."
Efter 85 år i erhvervslivet, GNC Holdings blev tvunget til at søge konkursbeskyttelse i juni. Selskabets aktie blev afnoteret fra New York Stock Exchange, men har handlet til 44 cents pr. aktie sammenlignet med $60-niveauet på dets højdepunkt i 2013.
GNC var allerede i problemer før pandemien ramte. Vitamin- og sundhedstilskudsfirmaet fortalte investorer i december sidste år, at det planlagde at lukke 900 steder inden udgangen af 2020, med henvisning til faldende trafik i indkøbscentre. At skulle lukke butikker midlertidigt under corona-låsen var det sidste slag. Losses in its first quarter hit $200 million, and the company is nearly $900 million in debt.
Under its reorganization plan, GNC said that between 800 and 1,200 stores would be permanently closed as it used Chapter 11 to "to right-size store portfolio and improve its capital structure." Remaining GNC retail stores and the company's e-commerce site stayed open during the process.
In September, a federal bankruptcy court judge approved the sale of GNC to China's Harbin Pharmaceutical (GNC's largest shareholder) for $770 million. The sale had raised national security concerns but ultimately was approved. Underperforming stores were to be shuttered, but the company was expected to keep 1,400 GNC retail locations open.
Hertz Global Holdings (HTZZ, $15.00) filed for Chapter 11 bankruptcy protection on May 22. The 102-year-old car rental company was decimated when the coronavirus pandemic all but shut down travel. That capped four years of losses that already had Hertz on shaky ground.
Explaining that "no business is built for zero revenue," the company threw in the towel after its lenders were unwilling to extend the deadline for payments on car leases. At this point, the company was $18.8 billion in debt and had already laid off 12,000 workers – with another 4,000 on furlough.
Hertz continued operations as it restructures. Besides layoffs, the company sold off many of its 568,000 vehicles to raise cash and cut costs.
In the meanstwhile, Hertz shareholders had a wild ride. After its bankruptcy filing, Hertz stock got caught up in Reddit/Robinhood-fueled trading. At one point, the company was planning to issue $500 million in stock to take advantage of soaring share prices – a plan that was eventually cancelled after conversation with the SEC. In October, the company secured $1.65 billion in financing, giving it the capital to buy new vehicles – a move that sent the stock to a near doubler. Then on Nov. 5, the company announced it had landed another $4 billion for fleet financing.
Fast forward to March of this year, and Hertz received a $4.2 billion buyout bid from Knighthead Capital Management and Centares Management, which it accepted in May. HTZGQ shares jumped nearly 70% on the news – a rare payout for shareholders in a bankrupt company.
Apex Parks Group is a privately held operator of water parks and family entertainment centers in California, Florida and New Jersey.
Apex Parks already was struggling thanks to competition and consolidation in the industry. However, the coronavirus pandemic hit just in time to disrupt prime spring break and summer vacation business. Facing park closures because of the coronavirus lockdowns and uncertainty in what reopening would look like, the company filed for Chapter 11 bankruptcy protection on April 8.
A lender group led by private equity firm Cerberus Capital Management announced it would buy Apex Group for $45 million in a deal that would relieve Apex of some of its debt.
However, several Apex Parks "Boomers!" locations were permanently shut down in June. And in February, Apex Parks filed to convert its Chapter 11 bankruptcy to Chapter 7, saying the money generated by the sale was insufficient to fund Chapter 11 wind down operations and liquidation.
Art Van Furniture is a privately held Michigan-based furniture and mattress retailer that got its start in East Detroit in 1959, and has since expanded its presence to nine states.
However, Art Van Furniture has been circling the drain since founder Art Van Elslander sold it to private equity firm Thomas H. Lee Partners three years ago. After the chain lost money in 2019 and credit card companies demanded collateral for continued support, the company began preparing for liquidation. An attempt to refinance and save the business collided head-on with the coronavirus pandemic.
"However, due to a number of factors, including the impact of the coronavirus outbreak on investor confidence, the consortium was unable to secure needed investment in late February and last week some master lessors pulled out of the deal," Crain's Detroit Business writes.
The company filed for Chapter 11 bankruptcy protection on March 8, but the COVID-19 pandemic killed its ability to reorganize under Chapter 11, forcing it to convert to a Chapter 7 liquidation. Loves Furniture hs bought 27 of its stores and planned to reopen them under its own brand. Meanwhile, Robert Levin, who sold his operations to Art Van in 2017, agreed to a $26 million deal to buy Levin inventory in Pennsylvania and Ohio, planning to reopen some Levin locations.
However, In January, Loves Furniture also filed for Chapter 11 bankruptcy protection, saying it has "too much inventory and too little cash" to continue operations. The company began liquidating 13 stores last December, and is hoping to move forward with 12 stores. In February, the Van Elslander family paid $6 million to buy back the rights to the Art Van Furniture name, but it has not released any plans to use it going forward.
Privately held Cinemex Holdings USA was building a small empire of upscale dine-in movie theaters, with 41 CMX theaters in 12 states. But even though it was in expansion mode, it also was in distress before COVID-19 squeezed the economy.
"Even prior to filing for bankruptcy, we were spending over 30 percent of our revenues on lease-related expenses while studios ended up with 60 percent of every ticket sold," Cinemex told Deadline.
Cinemex had been in negotiations to buy Houston-based Star Cinema Grill when the coronavirus lockdown hit. The deal would have made Cinemex the seventh largest U.S. movie theater chain. However, with theaters shut down, rent due and an uncertain future thanks to COVID-19 concerns, the deal was scuttled. Shortly after, Cinemex filed for Chapter 11 bankruptcy protection.
"We are in a state of complete uncertainty as to when we can re-open our theaters and when our customers will feel safe and secure in returning to them given that there is presently no vaccine against the virus," Cinemex Holdings USA said in a statement. "We cannot forecast when – if ever – customer numbers will return to pre-crisis levels."
In December, Cinemex Holdings USA emerged from bankruptcy protection. The company had spent six months negotiating with landlords, coming out with modified leases that included revenue-sharing provisions. Ten underperforming locations were closed.
Texas-based Diamond Offshore Drilling is one of several energy stocks hit hard by the one-two punch of reduced oil demand thanks to the coronavirus, and the brief Saudi-Russian price war.
As demand dried up, U.S. oil producers began shutting off their oil wells in the Gulf of Mexico, which killed demand for Diamond's drilling rigs. The company had been borrowing heavily, and S&P Global Ratings downgraded the company's debt for a skipped interest payment before Diamond ultimately filed for Chapter 11 bankruptcy protection April 26.
"Like many companies, Diamond has been impacted by the continued downturn in the oil and gas industry," the company said in a release. "Restructuring our finances will allow us to build a bridge to the upturn in the industry when fleet utilization and day rates return to more normal levels."
On Jan. 25, Diamond Offshore Drilling announced its creditors had agreed to a comprehensive restructuring plan. Then in April, the company announced it had exited Chapter 11.
"The restructuring significantly delevers the Company's balance sheet and provides substantial liquidity for the Company, resulting in the equitization of approximately $2.1 billion in senior unsecured note obligations and providing the Company with over $625 million of new available capital," Diamond Offshore said in a statement.
FoodFirst Global Restaurants is the privately held parent company of Italian-themed restaurant chains Bravo and Brio.
The restaurants once belonged to Bravo Brio Restaurant Group, which was founded in 1992. The company went public in 2010 but went private in 2018 via a sale to Spice Private Equity, which renamed the company FoodFirst Global Restaurants. Because of struggles at Bravo and Brio, FoodFirst hired a new CEO in January 2020 to implement a turnaround, with a goal of improving efficiency.
But that turnaround was kneecapped by forced restaurant closures on the heels of the COVID-19 pandemic. FoodFirst Global Restaurants filed for bankruptcy on April 11, writing in its filing:
"The improvement process was radically altered due to the current international health crisis, creating massive restaurant closings and employee losses throughout the country via state ordered shelter-in-place requirements, which exacerbates the need to reduce the Restaurants' footprint in order to maintain the strongest and most viable locations."
FoodFirst had already closed 10 locations permanently in early January and expected to close more as their leases expire.
In June 2020, the Robert Earl Group (operator of Planet Hollywood restaurants) acquired FoodFirst Global's Bravo and Brio restaurants, announcing the deal would see more than 4,000 employees return to work once locations were fully operational.
Unlike many companies on this list, privately held Gold's Gym wasn't struggling prior to the coronavirus pandemic. In fact, the company specifically discounts any prior issues as being a factor in its bankruptcy:
"2019 was our strongest year of worldwide growth in company history," the company writes." No single factor has caused more harm to our business than the current COVID-19 global pandemic and the temporary closures required to protect the safety of our members, team members and communities."
Instead, the May 4 bankruptcy was meant to help the company financially restructure. Gold's said it would permanently close 30 company-owned gyms, but it expected its early 700 global franchised and licensed gyms to reopen.
In July, Gold's Gym announced that German fitness company RSG Group GMBH had won a court-approved auction to buy the chain for $100 million. That plan was approved by a U.S. bankruptcy court in August.
Intelsat (INTEQ, $0.48) isn't one of the kinds of businesses you'd imagine falling to the COVID-19 outbreak. The company helps broadcast and cable TV providers distribute content to customers, as well as provides communications services, via a fleet of 50 satellites.
Intelsat wants to launch new satellite technology that would allow it to sell off part of its C-Band spectrum as part of an FCC airwave auction. That spectrum would be sold to wireless companies as they bulk up their 5G service.
However, "to meet the FCC's accelerated clearing deadlines and ultimately be eligible to receive $4.87 billion of accelerated relocation payments, Intelsat needs to spend more than $1 billion on clearing activities," the company writes. But Intelsat also is servicing nearly $15 billion in debt that previous private equity owners saddled the company with, and the coronavirus pandemic further cramped its financial flexibility.
So, on May 13, the company filed for Chapter 11 bankruptcy protection, which was expected to help relieve some of that debt burden. In fact, CEO Stephen Spengler gave the announcement a positive twist, calling the filing "a transformational moment in the history of our company."
"This will position us to invest and pursue our strategic growth objectives, build on our strengths, and serve the mission-critical needs of our customers with additional resources and wind in our sails," he writes.
Despite being in bankruptcy, Intelsat continued to wheel and deal. In September, the company used $400 million of a $1 billion bankruptcy loan to buy the inflight Wi-Fi business of Gogo (GOGO).
In February 2021, Intelsat said it had reached an agreement with some of its creditors. The proposed plan would cut the company's debt to $7 billion and give unsecured debt holders 95% of the company's new shares. However, as of July, Intelsat still had not emerged from Chapter 11 bankruptcy.
J.C. Penney , one of the nation's largest department-store chains with nearly 850 locations, has long faced the same uphill battle as many of its brick-and-mortar competitors. The launch of its own e-commerce site, as well as experimenting with new store formats, hasn't been enough to reinvigorate the retailer.
Even during the 2019 holiday season, which saw record consumer spending, J.C. Penney's same-store sales (stores and websites open for at least 12 months) declined 7.5% year-over-year.
Store closures due to the COVID-19 pandemic were the final straw. On May 15, the company was forced to seek out Chapter 11 bankruptcy protection, and it also announced a restructuring support agreement that would help it "reduce several billion dollars of indebtedness."
Several days after that filing, the company said it plans to permanently close 242 J.C. Penney locations by 2021.
In September, Simon Property and fellow mall operator Brookfield Property Partners LP (BPY) were reported to be closing in on a deal worth $800 million to buy out the retailer. In December, the deal closed and J.C. Penney exited Chapter 11 bankruptcy protection, avoiding liquidation.
American clothing retailer J. Crew began life as Popular Merchandise in 1947 before taking on its current name in 1983. It initially was a catalog operation, but it expanded into J. Crew retail stores and eventually added the Madewell brand. Then in 2011, private equity firms TPG Capital and Leonard Green &Partners paid $3 billion to acquire J. Crew.
The company known for its "preppy" clothing has been accumulating debt ever since, owing roughly $1.7 billion as of Feb. 1. Declining sales have dogged the legacy brand, but Madewell was growing so much that J. Crew considered "unlocking" value by spinning it off via an initial public offering.
The coronavirus lockdown and resulting store closures derailed that plan, at least temporarily. J. Crew filed for Chapter 11 bankruptcy protection on May 4.
"We are and will remain fully operational throughout this restructuring process," J. Crew said in a statement. "We will continue operating under the COVID response measures currently in place and look forward to reopening our stores in accordance with CDC guidance as quickly and safely as possible."
In September, J. Crew announced it had completed financial restructuring and was emerging from Chapter 11 protection, with Anchorage Capital Group as the majority owner of the company.
Privately held Neiman Marcus is an iconic, luxury retail chain that was founded in 1907. Its latest store, which opened in 2018, was a three-floor, 188,000-square-foot location in Manhattan's Hudson Yards development. In addition to 43 Neiman Marcus locations, it also owns 22 Last Call outlets and two Bergdorf Goodman stores.
But the company has been struggling under about $5 billion in debt, as well as watching customers abandon its lavish department stores for the comfort of online shopping.
COVID-19 forced Neiman Marcus to temporarily close all of its stores, which ultimately was the company's breaking point. Neiman Marcus filed for Chapter 11 bankruptcy protection on May 7, with CEO Geoffroy van Raemdonck writing:
“Prior to COVID-19, Neiman Marcus Group was making solid progress on our journey to long-term profitable and sustainable growth. … However, like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business.”
On Sept. 25, Neiman Marcus announced it had completed its Chapter 11 bankruptcy restructuring. As expected, the company was able to eliminate over $4 billion in debt, as well as $200 million in annual interest payments. The company's new owners include Davidson Kempner Capital Management, Pimco and Sixth Street Partners.
The new Neiman Marcus is leaner with fewer in-store staff. It plans to focus on a luxury lifestyle and online selling (including connecting with its customers through digital services), while also trying to attract new millennial and Gen Z shoppers.
Many of the companies on this list expect to continue operating during and after their bankruptcy reorganizations. But Pier 1 Imports could be done for good.
Pier 1 Imports, which has already closed hundreds of stores over the past few years, has simply been unable to fight the one-two punch of growing online competition from e-commerce stocks such as Amazon.com (AMZN) and Wayfair (W), as well as big-box stores such as Target (TGT) and Walmart (WMT).
Pier 1 had already closed 402 of its more than 940 stores before filing for Chapter 11 bankruptcy protection on Feb. 17, before COVID-19 started hammering U.S. retail.
But the coronavirus nonetheless dealt the death blow. On May 19, Pier 1 announced it was giving up on its previous bankruptcy plans and simply liquidating, shutting down its remaining 540 or so stores.
"This decision follows months of working to identify a buyer who would continue to operate our business going forward," CEO Robert Riesbeck said in a press release. "Unfortunately, the challenging retail environment has been significantly compounded by the profound impact of COVID-19, hindering our ability to secure such a buyer and requiring us to wind down."
Retail Ecommerce Ventures (REV) paid $30 million for the retailer's name and intellectual property in July. In October, REV began operating Pier 1 Imports as an e-commerce site.
Houston-based Stage Stores operates hundreds of stores across 42 states under banners including Stage, Bealls, Palais Royal, Peebles, Goody's and Gordmans. These stores focus on moderately priced and discount goods, and are predominantly located in small towns and rural areas.
Most of Stage Stores' brands were previously snapped up in bankruptcy sales, and the company had been planning to convert all stores to the Gordmans banner. Stage had a considerable debt load and suffered poor holiday sales in 2019, but it was working on strengthening its financial position and seeking prospective buyers when the COVID-19 pandemic forced it to shutter its stores.
On May 11, it threw in the towel and declared bankruptcy:
"The increasingly challenging market environment was exacerbated by the COVID-19 pandemic, which required us to temporarily close all of our stores and furlough the vast majority of our associates," Stage Stores wrote in a release. "Given these conditions, we have been unable to obtain necessary financing and have no choice but to take these actions."
In August, Stage Stores announced court approval for its bankruptcy plan, which involved liquidating all stores and winding down the company after attempts to find a buyer fell through. In October, Florida-based Bealls Inc. paid $7 million for Stage Stores' trademarks and store names – including Bealls, which Bealls Inc. had previously only been able to use in Florida, Georgia and Arizona.
California-based jeans maker True Religion , the California-based maker of high-end jeans, filed for bankruptcy on April 13. That's the second time it has done so in three years; it also filed in 2017 and re-emerged with $390 million less in debt.
Sales of True Religion jeans have been hit by slowing spending at department stores including Macy's and the aforementioned Neiman Marcus. The rise in popularity of athleisure wear was also putting pressure on demand for denim.
The coronavirus outbreak sealed its fate, however. The company was forced to close its 87 retail stores and its wholesaling arm.
"These closings have caused a sudden and unplanned elimination of approximately 80% of the Company's revenue, making a chapter 11 filing unavoidable," Interim CFO Richard Lynch wrote in court documents.
On Oct. 20, however, True Religion successfully emerged from Chapter 11 bankruptcy protection with a reduced debt load and lowered operating expenses. Simon Property Group, the landlord for many of True Religion's retail properties, "was an essential partner in the Company’s reorganization."
The number of stores that will reopen was trimmed down from pre-bankruptcy levels to 50.
Many U.S. shale oil producers were already under financial pressure before the start of 2020. Thanks to low oil prices and high debt loads, 41 oil companies filed for bankruptcy protection in 2019.
More of the same is likely on the way. A report by Norwegian energy research firm Rystad Energy says that if oil prices remain low, more than 240 U.S. energy firms might have to seek out bankruptcy protection by the end of 2021.
Whhiting Petroleum (WLL, $48.66) managed to make it to 2020, but the U.S. fracker finally succumbed on April 1, when it filed for Chapter 11 bankruptcy protection. That comes alongside an agreement that saw Whiting debtholders acquire a 97% equity stake in the company in exchange for taking $2.2 billion in debt off the books.
"Given the severe downturn in oil and gas prices driven by uncertainty around the duration of the Saudi / Russia oil price war and the COVID-19 pandemic, the Company's Board of Directors came to the conclusion that the principal terms of the financial restructuring negotiated with our creditors provides the best path forward for the Company," Whiting Petroleum wrote in a press release.
Den gode nyhed? Whiting actually emerged from Chapter 11 bankruptcy protection on Sept. 2. Unfortunately, the perceived jump in "WLL" shares was a bit of a mirage. The old WLL shares were completely wiped out and replaced with new shares as of Whiting's emergence. Those shares have done well in 2021, however, up nearly 95% year-to-date.