We know everything about bankruptcy
24/11/2024
Sunday
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
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US RETAILERS BREAK BANKRUPTCY RECORDS
MarketWatch, an online media specializing in financial issues, has released data on the record number of bankruptcies that marked the outgoing year 2020 in the United States. According to the media, the number of retail companies filing for bankruptcy this year has exceeded the figures of the last ten years. At the same time, experts believe that it is not worth hoping for an improvement in the situation in the nearest future.
Since the global financial crisis in 2008-2009, the market has not experienced such a pressure, overloaded with mass bankruptcies. S&P Global Market Intelligence reported 49 retail companies that went bankrupt by mid-November. At the same time, the pandemic was only a “control shot” for many companies that had experienced significant difficulties in their work before, say the analysts.
According to the vice president of Moody's, the spread of the coronavirus and the socio-economic problems related to it have only accelerated the processes that would inevitably take place sooner or later.
Many retailers have attempted to go online and invest in e-commerce, but this required stable revenue from traditional market channels.
The pandemic, which has suspended the activities of many retail outlets, forcing people to reduce shopping as much as possible because of fear of illness, did not allow the companies to muster the courage and launch a workflow. This applies not only to small firms, but also to many well-known retail chains in the United States.
A number of companies hastened to remove unnecessary trading locations, having reduced their number by several times.
In particular, from January 1 to December 4, 8,400 retail outlets were closed in the United States. This data is provided by the Coresight Research Company. Gap and Children's Place brands have gone to reduce their presence in offline market.
However, not everything is as sad as it seems at first glance. American experts note that the securities of many trading companies, including Walmart Inc. and Target Corp. went up 21% and 37%, respectively. Despite the global catastrophic situation, financial indicators of stock indices for 2020 are showing steady growth.
