Bankruptcy Caused by The Pandemic is rising at a dizzying rate. Top companies in our State are facing bankruptcy situations because of this terrible pandemic that has been ongoing for almost a year now. Slow digital transition and poor financial management has, in particular, affected certain retailers. There have been several cases of some brick and mortar retailers not being able to pay their rent and forced to file bankruptcy.
Bankruptcy and The Retail Sector in Oklahoma
Retail (32%), food service (7%), oil and gas (30%), and travel and tourism (7%) are the sectors with the most liquidation and insolvency filings as per data collected by the leading data and analytics company, GlobalData.
Food service and retail companies have faced insolvency and bankruptcy because of their procrastination in regards to going digital. Tourism and oil and gas experienced waning consumer interest and demand. Retail companies, such as J. Crew and J.C. Penney have suffered greatly because of the pandemic stemming from the Wuhan virus.
The situation is even worse for retail chains in Tulsa that couldn’t make the transition to digital sales quickly enough. The shuttering of brick and mortar stores have driven some chains to the point of insolvency – more so in lock down states which is not the case for Oklahoma. In May 2020, J.C. Penney had to file for bankruptcy because of their ultra-low consumer demand and piling debt.
The Oil Sector and Oklahoma Bankruptcy Cases
The oil and gas sector, many companies within this sector, are on the verge of liquidation and bankruptcy filing. There is a steep depreciation in the demand for oil that has caused prices to hit rock bottom. Such low prices have driven companies, such as Chesapeake Energy and Whiting Petroleum Corp. (Oklahoma City), to file for bankruptcy.
Some Pizza Hut’s, NPC International, and some Wendy’s franchisee have also filed for bankruptcy in the food service sector. Starbucks, McDonald’s, and the Whopper selling Burger King quickly adapted to changing consumer demands just like they did when confronting high minimum wage laws in other states. In addition, many small restaurant chains have experienced a significant decline in consumer volume.
LATAM Airlines recently filed for bankruptcy protection under Chapter 11 in the United States. Virgin Atlantic ratified Chapter 15 bankruptcy protection to shield its assets from creditors in the United States.
Between June and August 2020, liquidation, bankruptcy, and insolvency saw a 250% rise in all company filings.
Don’t Hesitate to Discuss Bankruptcy Options
Thousands of dollars are spent by Oklahoma residents in settling their debts. Unfortunately, in most cases the debt management program is unsuccessful, and people still end up facing bankruptcy. You are not alone if you are facing difficulty paying your bills.
Many Americans, along with people all over the world, in the pandemic era are living paycheck, or unemployment check, to paycheck where a single missed paycheck could bring them to bankruptcy or foreclosure. Nobody wants to file for bankruptcy. But, a lot of hardworking and good people end up filing for one.
The majority of people filing for bankruptcy have tried to settle their debts to the best of their capacity. However, they don’t have any other place to turn except take the final step of liquidation. However, you don’t need to be embarrassed or hesitant to talk about bankruptcy.
Consult with a Seasoned Bankruptcy Attorney in Tulsa
Bankruptcy caused by the pandemic is on the rise. The team at South Tulsa Bankruptcy Lawyers is here to help you determine whether bankruptcy is the right choice for you. We understand individual cases and recommend particular forms that best suit a client’s needs. We understand it is not easy to choose to file for bankruptcy. This is why as your Oklahoma bankruptcy attorney we will do everything in our power to make the situation less overwhelming, confusing, and daunting. Give us a call today at 918- 739-8984 or use our online form to schedule a free case evaluation.
