Unfortunately, 2020 was a rough year for businesses around the world. The economy came to a screeching halt due to the ongoing COVID-19 pandemic. Unfortunately, many businesses were negatively impacted and the economy couldn’t open up soon enough. The good news is that not all businesses experienced trouble. Still, a few will likely disappear. Which companies file for bankruptcy in 2020? You’ll find out in the guide below.
Chuck E Cheese
Most people remember going to Chuck E. Cheese when they were kids. The chain offered a unique experience that was great for all ages. As a kid, you likely loved going to your local restaurant so you could play some of the amazing games and win countless tokens. However, most people know little about this company. One thing to note is that the restaurant chain was founded in 1977 in San Jose, California.
Its headquarters can be found in Irving, Texas. David McKillips has served as CEO since 2020. However, the company has experience turmoil due to the pandemic. Unfortunately, Chuck E. Cheese filed for bankruptcy in 2020. During the middle of the COVID-19 pandemic, the company filed for Chapter 11 bankruptcy protection and eliminated more than $700 million in debt.
In addition to this, it increased liquidity to ensure it could continue operating in the United States. Despite going through difficult times, the company is not disappearing. It emerged from bankruptcy not long ago and has continued operating stores across the country.
Unfortunately, America’s energy industry experienced intense turmoil due to the COVID-19 pandemic. During the early days, it was announced that airlines would impose restrictions. In addition to this, the country came to a standstill. Many companies closed their doors for good. Others shut down in hopes of opening again when the pandemic ended. Since fewer people were driving, the demand for gasoline dropped significantly. Instead of going out, people stayed at home and enjoyed wetten. As a result, American gas companies were hit hard.
Chesapeake Energy’s headquarters can be found in Oklahoma City. The company has experienced turmoil during the past few years despite having more than 1,300 employees. It focuses mainly on natural gas and petroleum. In June of 2020, it was announced that the company would file for bankruptcy protection. At the time, it had $7 billion in debt. However, the company wasn’t going to shut down for good. Instead, it emerged from bankruptcy in February of 2021.
Most people have heard of Hertz. The company has been in business for many, many years. Nevertheless, it has gone through difficult times during the past few years. It was one of the many companies that had to file for bankruptcy last year. The American car rental company was originally founded in 1918 by John Hertz and Walter Jacobs. Since then, it has become one of the largest rental companies in the world with 24,000 workers.
It competes with several companies, including Avis and Enterprise. Nevertheless, Hertz was considered the leader of the industry until it had to file for bankruptcy. Nevertheless, Hertz isn’t going away. The company announced in June that it would raise up to a billion dollars in new equity. Its stock was removed from the NYSE in October of 2020. Nevertheless, Hertz has continued.
Most people realized that retail chains were in trouble. JC Penney was one of the many retail stores that were on the verge of closing before the COVID-19 pandemic. The company was founded in April of 1902 making it one of the oldest retail stores in the world. It was opened by James Cash Penney and William Henry McManus. In February of 2021, it had 689 locations around the country. With competition from Amazon and Walmart, JC Penney experienced hardships during the past few years.
It filed for Chapter 11 bankruptcy protection on May 15, 2020. At the time, it confirmed that it would be closing another 242 stores. In March, it had closed stores in many states and furloughed many workers. In September of 2020, JC Penney was purchased by Simon Property Group and Brookfield Property Partners for roughly $800 million. When it emerges from bankruptcy, the company should save 60,000 jobs. However, it has not developed a new headquarters yet.