By Nishtha Garg

2020 was the worst year for bankruptcies in a decade, when the aftermath of the financial crisis tanked Blockbuster and Hummer. As of September, upwards of 80 companies had already filed for bankruptcy as a result of the pandemic and its impact on our erratic, cash-strapped shopping habits and the global supply chain. Sectors like retail, restaurants, entertainment, real estate gas and oil were hit harder than most. Around 35 of those were major chains with over 25 locations. Few of these companies have completely shuttered (though several, like Pier 1 Imports and Stein Mart, have) but many sold to new owners, restructured their businesses and closed hundreds or even thousands of stores.  

The carnage slowed but didn’t stop in the fourth quarter and the beginnings of 2021. Most of the financially rocky and hardest hit companies had already gone under. But over ten new companies have joined the bankruptcy list since Labor Day. However, it’s necessary to note that this isn’t the end of a business. It isn’t a death sentence. Companies that file for bankruptcy negotiate with creditors to restructure debt terms. General Motors GM went insolvent during the last financial crisis in 2009 and regained its footing and profitability as America’s largest automaker. Delta, United UAL and American Airlines AAL have all endured bankruptcy reorganizations in the last two decades.