Industry experts are saying it’s likely.
The COVID-19 pandemic has pushed thousands of businesses past the point of no return. While some businesses shuttered and never reopened after government-ordered shutdowns were lifted, others decided to file for Chapter 11 bankruptcy with the hopes that after they reorganize, they will be able to keep their business alive and running. Stein Mart, Lucky Brand, Neiman Marcus, and J.C. Penney are only a few of the larger businesses that have already filed for bankruptcy protection amid the COVID-19 pandemic.
As we near the winter months, however, health officials warn there could be a second wave of COVID-19 which could potentially push additional businesses into filing for bankruptcy. CNBC says that industry executives and analysts “predict another round of retail bankruptcies and liquidations could be coming if the predicted second wave of COVID-19 infections happens.” Although nearly 44 retailers, not including small businesses, have initiated the bankruptcy proceedings, other companies like Blue Apron and Wayfair are “high on S&P Global’s list of companies at risk of defaulting on their debt and seeking bankruptcy protection,” according to Bradley Snyder, who is an executive managing director at the liquidation firm Tiger Capital Group.
Experts Predict Mid- and Small-Size Companies Will File for Bankruptcy in the Fall
Although bankruptcy courts are busy, Andy Graiser, who is the co-CEO at the restructuring firm A&G Real Estate Partners says, “We may just be a little bit on pause right now, because there has been so much [activity].” However, he believes we will begin to see “mid- and small-size companies filing in the fall.” Graiser says many businesses have been receiving financial support from the government which has helped them “buy time,” but “if their sales aren’t there, you are going to see more bankruptcies.”
Is your business drowning in debt? Are you struggling to recover from the financial hardship the COVID-19 pandemic has caused you to suffer?
If you are worried that you won’t be able to manage your debt and are considering filing for bankruptcy in Tulsa, OK, contact the Henson Law Firm, PLLC to discuss the following with a skilled Oklahoma bankruptcy attorney:
- What does it mean to file for bankruptcy?
- What are the different types of bankruptcies you can file for in Tulsa, OK?
- The pros and cons of filing for bankruptcy.
- The bankruptcy process from start to finish.
- What eligibility criteria must be met in order to file for a Chapter 7, 11, or 13 bankruptcy in Oklahoma?
If you’re ready to learn more about the bankruptcy process as well as if filing for bankruptcy is a suitable option for you or your company, contact the Tulsa, OK bankruptcy attorneys at the Henson Law Firm, PLLC today.
The Henson Law Firm, PLLC is located at:
601 S. Boulder, Suite 600
Tulsa, OK 74119
*We are a debt relief law firm in Tulsa, Oklahoma.
*We help people file for bankruptcy relief under the Bankruptcy Code.