A flood of business bankruptcies likely in coming months

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The billions of dollars in coronavirus relief targeted at small businesses may not prevent some of them from ending up in bankruptcy court.

Howard Schultz spoke with ABC News’ Rebecca Jarvis about the essential aid small businesses need and how leaders should walk the line between protecting public health and ensuring livelihoods.relief targeted at small businesses may not prevent many of them from ending up in bankruptcy court.

The most vulnerable companies include the thousands of restaurants and retailers that shut down, many of them more than a month ago. Some restaurants have managed to bring in a bit of revenue by serving meals for takeout and delivery, but even they are struggling financially. Small and independent retailers, including those with online stores.

“There is no reliable visibility into when business operations will be able to resume the pre-COVID normal,” Singerman says. The number of Chapter 11 filings rose 18 percent in March from a year earlier, a dramatic swing from the 20 percent decrease in February, according to the American Bankruptcy Institute, a trade organization for attorneys and other professionals involved in bankruptcy proceedings. The numbers don’t break out filings by company size, but given that the vast majority of companies are small to mid-size, it does give an indication that smaller companies are struggling.

Many companies, however, just shut their doors, and that’s likely to be the case again, Singerman says. According to some estimates, 170,000 companies failed during the recession.

 

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Some is the key. Any good effect is good. Don't look at what they didn't do: Nancy Pelosi.

Didn't they give all that money to people and businesses that didn't need it? Why would they do that? Small businesses got as much right to that money as any large business! Giving to the rich... taking from the poor!

I am all for sheltering in place to keep everyone safe. But let’s be honest, this is not sustainable. The government can’t keep wiring money to its citizens. I still have a job but I feel for those who lost theirs. We deserve to see a concrete plan to get America churning again.

If the Feds don't do their jobs and get the millions and millions of proper tests available, many small business are going to have to close again amid more waves of the virus !

No duh.

YOU DON’T SAY.

You must always remember; if leftists didn't have double standards, aka, hypocrisy, they'd have no standards at all! It makes them easy to recognize! CNN FoxNews NPR MSNBC CBS POTUS GOP TheDemocrats

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