… "We're going to see businesses that will not survive. Thirty gyms will remain permanently closed. The Oil Industry Bankruptcy Wave Has Only Just Begun The industry, which has already seen a few notable bankruptcies, will probably witness many more in the coming months. "So if I'm not working, I am what we call creditor-proof," he said. Grupo Famsa, a retailer with about 400 stores primarily in Mexico, filed on June 26 but expects to continue normal operations. It still plans to reopen its 181 J.Crew stores, 170 factory stores and 140 stores for its women’s clothing brand Madewell after coronavirus-related restrictions are lifted. Organic grocer Lucky’s Market filed on January 27 and plans to sell most of its stores to Aldi, Publix and other winning bidders. "The question is, when will it all come crashing down?". With assets of roughly $16.2 billion and liabilities of $11.8 billion, the filing represents the fourth-largest bankruptcy by assets so far in 2020, above that of Intelsat. , weeks after it announced it was laying off 20% of its corporate workforce and closing up to 500 stores. Research from investment bank Jefferies shows that large-firm bankruptcies shot 244% higher year-over-year in the July-August period, and that large-firm bankruptcies in 2020 … and American Airlines Bankruptcies Builds Toward Worst Run in Many Years By . That would translate to around 1.3 million Canadians. , a food distributor with $3.5 billion in revenue in 2018, filed on June 10 weeks after its assets. "Obviously, there's going to be a massive spike in bankruptcies: that would be the conventional wisdom," Hoyes said. And that may be at the end of August, when the CRA is, in fact, starting to seek payments for income tax or arrears of tax," he said. Wave of U.S. have all endured bankruptcy reorganizations in the last two decades. The unemployment rate in Canada decreased to 8.5 percent in November of 2020 from 8.9 percent in the previous month and compared to market expectations of 8.9 percent. Old Time Pottery, a Tennessee-based home decor retailer with 43 locations in 11 states, filed on June 28 and said it would close four of its stores. CSGP With the coronavirus pandemic leaving many in a precarious and dire financial situation, Lou Brzezinski and other lawyers and insolvency trustees have been sitting by the office phone, expecting it to ring. on May 19. It's partly because few businesses are putting pressure on customers to pay their debts. San Antonio-based oil and gas servicer Pioneer Energy filed on March 2, though it is continuing operations. The U.S. courts recently … , the London-based parent company of British chains Cafe Rouge and Bella Italia. Bankruptcies in Canada is expected to be 205.00 Companies by the end of this quarter, according to Trading Economics global macro models and analysts expectations. You just need to scroll up this list of 2020 airline bankruptcies to find a few examples (Avianca Perú, Germanwings, … , which offers products for aortic disorders. Tue, Sep 29th 2020 . was the first big American retail domino to fall amid the pandemic. , seeking to eliminate $4 billion in debt. on May 31 after oil prices collapsed this spring. and announced it was selling its five operating companies. Wisconsin-based auto parts and plastics manufacturer Techniplas filed on May 6 as it hopes to find a buyer. This story was originally published on June 24, 2020, and has been updated. , which owns brands like Gordmans and Bealls. , which installs roofs and solar panels in nine states in the Southwestern U.S.. , a home furniture chain with close to 1,000 locations at the beginning of the store. , a large hospital operator in the United Arab Emirates. Le Pain Quotidien’s U.S. arm, PQ New York, filed on May 27 and announced plans to be sold to restaurant conglomerate Aurify Brands, which will keep 35 of its 98 bakeries in the U.S. open. with the pandemic suffocating demand, though it will continue operating its limited passenger and cargo stats as scheduled. McClatchy, which operates 30 newspapers in 14 states, filed on February 13, ending 163 years of family control of the business and signaling the continuing erosion of local news. ... the Canadian market. . After attempting to regain sales numbers without success, more retailers in Canada are expected to file for bankruptcy protection in the fall, according to Mr. Louis. Town Sports International, the parent company of New York Sports Clubs and fitness chains in other major East Coast cities, filed on September 14 after its gyms were forced to close for much of the spring and summer. It said in court filings it was closing 185 locations, leaving 236 remaining, but CEO Shawn Lederman said in its press release that “this announcement does not mean ‘Goodbye, Ruby Tuesday.’”. , a joint venture between Royal Caribbean and Cruises Investment Holding that has canceled all cruises through November 15. , a North Carolina-based tobacco supplier whose stock was trading at more than $40 less than two years ago but has seen its supply chain disrupted by the Covid-19 pandemic. Last week I wrote about amendments to Canadian insolvency law for intellectual property rights in my Brandon’s Blog INSOLVENCY LAW CANADA AMENDMENTS FOR INTELLECTUAL PROPERTY RIGHTS In addition to the intellectual property rights amendments, other amendments affecting how bankruptcies work in Canada. on July 14 after its revenue declined by 56% in the first half of 2020. and warned that it may close unprofitable locations. You just need to scroll up this list of 2020 airline bankruptcies to find a few examples (Avianca Perú, Germanwings, South African Express, Air Asia Japan, etc.). As the economic crisis worsened, it converted its Chapter 11 reorganization to a Chapter 7 liquidation in early April. Upscale stationary chain Papyrus’ parent company filed on January 24 and closed all 254 of its stores. Business at all of them has been upended by coronavirus shutdowns. Vision Group Holdings, which pversees two Lasik eye surgery providers, filed on May 30 with demand for elective surgeries all but disappearing. Intelsat filed on May 13, though it said it will continue to launch new satellites. It aims to reduce its debt by $700 million and continue normal operations. went insolvent during the last financial crisis in 2009 and regained its footing and profitability as America’s largest automaker. It is liquidating its business in Ireland, permanently closing its 11 stores there. on July 6 after business slumped as Europe shut down for most of the spring. It aims to reduce its debt by $700 million and continue normal operations. Business at all of them has been upended by coronavirus shutdowns. Below is a list of all companies that have been granted protection under the Companies' Creditors Arrangement Act (CCAA) since September 18, 2009.The CCAA is a federal law allowing insolvent corporations that owe their creditors in excess of $5 million to restructure their business and financial affairs. Reitmans, a prominent Canadian fashion retailer with 576 stores, began a restructuring process on May 19. "We need one domino to fall. Swedish fashion retail chain MQ filed on April 16 as sales plunged at its physical locations while customers stayed home due to the pandemic. Romanian airline Blue Air announced it was entering a debt restructuring procedure on July 6 after business slumped as Europe shut down for most of the spring. Health and wellness retailer GNC filed on June 23 and announced it would accelerate the closure of 800-1,200 of its 7,300 locations. , a movie theater chain that also owns dine-in restaurants and bars. , an online search platform for rental homes, while at the same time announcing it was being bought out of bankruptcy by competitor CoStar Group. Industrial battery maker Exide Technologies, based in Georgia with more than 8,000 employees in 80 countries, filed on May 22 and agreed to sell its businesses in Europe and Asia. ... Cancelled its 2020 season, resulting in the loss of 240 jobs. Even though the number of farm bankruptcies in the United States remains well below historical highs, it grew by nearly 20% in 2019. Intu Properties, which operates 19 shopping malls in the U.K. and Spain, entered administration on June 26 with more than $5 billion in debt. on March 30, shortly after its 73 locations were required to close. last year. Countless more are on their way. New York bankruptcies reportedly surge 40% during pandemic. "So businesses are also going through the great deferral.". Insolvency statistics in Canada by Forward Sortation Area (FSA)—October 2020 Insolvency statistics in Canada by North American Industry Classification System (NAICS)—October 2020 Subscribe to the RSS feed to ensure you always have access to the latest information. , ending 163 years of family control of the business and signaling the continuing erosion of local news. Canadian bankruptcies laws. RavnAir, an intrastate airline in Alaska, ceased operations and laid off all staff when it filed for bankruptcy on April 5. "But when will the taps turn on again with respect to the payments? Frontier Communications This list will be updated as more join the group: 24 Hour Fitness filed on June 15 and announced that it will permanently close more than 100 of its roughly 400 gyms, citing the “disproportionate impact” of the coronavirus pandemic on the fitness industry. , based in Montreal and famed for its circus acts on the Las Vegas Strip. He covers Canadian and U.S. politics and current affairs. Co-CEO Raymond Gindi blamed the company’s insurers that “turned their backs on us” in a press release. as it looks to sell off its cementing business and parts of its fracking business. A variety of newsletters you'll love, delivered straight to you. , a Dallas-based luxury menswear retailer rooted in one-on-one contact with customers for its custom-made suits and shirts. "One of the primary causes of personal insolvency is a high level of consumer debt coupled with an unexpected life event," Bolduc said. The luxury department store managed to restructure its massive debt outside of bankruptcy proceedings last year, but that was not the case in … Canadian retail superstore Sail Outdoors filed on June 2. But that's not happening — not yet, at least. It could be around the same time income tax does eventually come due, he said. Discount retailer Century 21 filed on September 10 and announced it was liquidating and closing its 13 stores. British fashion retailer Debenhams, which employs more than 20,000 people, entered administration on April 6 for the second time in the last year as it struggled to stay afloat with its stores closed. Luxury department store Lord & Taylor and its owner, Le Tote Inc., joined the growing list of major retailers going bankrupt on August 2. New Zealand furniture and appliance retailer Smiths City entered receivership on May 21 to expedite its sale to Polar Capital. , which served more than 30 million passengers last year as one of Latin America’s largest airlines. Virginia-based cloud services provider Internap filed on March 16 to renegotiate its debt. Rural hospital chain Quorum Health filed a prepackaged chapter 11 plan on April 7 to reduce its debt by $500 million. Fri, Sep 25th 2020. This time is the turn of Cathay Dragon (once known as Dragonair), a subsidiary of Cathay Pacific that operated throughout Asia. Texas-based BJ Services filed on July 20 as it looks to sell off its cementing business and parts of its fracking business. Hotel and travel Brands like Shearings, a Dallas-based luxury menswear retailer rooted in one-on-one contact customers... 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