The US department store epitome chain, which began operations in Wyoming more than 100 years ago, revealed on May 15, 2020 that it was filing for bankruptcy protection as the coronavirus pandemic hit the final push in years of financial difficulty. The chain has some 850 stores and around 85,000 employees around the country. “The coronavirus pandemic has created unparalleled challenges for our families, loved ones, communities and government, resulting in a radically different reality for the US retail industry,”
Through the Chapter 11 bankruptcy process, the company must now try to reduce its debt. For this she revealed she’ll close stores, though without specifying when and what they’ll be for the moment. “The stores will close in phases during the Chapter 11 process, and the first closings will be announced in the coming weeks, including specifics and timetable,” the chain said in its statement.
When it hit the US mid-March, the coronavirus pandemic collapsed sales of virtually every company, store, and restaurant. In what analysts describe as a widespread “butchery,” sales of clothing and accessories store plummeted in April by 79 per cent.
The sales slump triggered by the introduction of the latest coronavirus happened as department stores like JC Penney, like the online sales boom, had been dealing with a decline in revenue for more than a decade.
Recently, Hertz, one of the world’s largest vehicle rental firms, has also filed for bankruptcy amid the travel chaos caused by the pandemic. “The covid-19 ‘s effect on the market for travel was abrupt and severe, triggering a rapid decline in the company’s projected sales and reserves