CNN: Guitar Center is filing for bankruptcy

CNN: Guitar Center is filing for bankruptcy. “The 61-year-old company — the biggest musical instrument retailer in the United States — had tried to stay afloat during the coronavirus pandemic by offering virtual music lessons. But Guitar Center was forced to close many of its stores in March during nationwide lockdowns, and it struggled to get customers to buy instruments as the economy headed south.”

Wall Street Journal: Hundreds of Companies That Got Stimulus Aid Have Failed

Wall Street Journal: Hundreds of Companies That Got Stimulus Aid Have Failed. “About 300 companies that received as much as half a billion dollars in pandemic-related government loans have filed for bankruptcy, according to a Wall Street Journal analysis of government data and court filings. Many of the companies, which employ a total of about 23,400 workers, say the funds from the Paycheck Protection Program weren’t enough to keep them going as the coronavirus and lack of additional stimulus payments weighed on their businesses.”

NBC News: Beloved businesses are going bankrupt waiting for federal help. It will get worse

NBC News: Beloved businesses are going bankrupt waiting for federal help. It will get worse. “The election may be over, but the White House and Capitol Hill are no closer to terms on a new Covid-19 relief plan. And even if a deal is reached, it’s far too late to help save as many as 100,000 small businesses that have been forced to close while waiting for more help, like The Funky Sister. Neighborhood shops around the country are in mortal danger every day Washington fails to act.”

Slate: Why COVID Was the Final Straw for Brooks Brothers

Slate: Why COVID Was the Final Straw for Brooks Brothers. “The COVID pandemic and the work-from-home-in-sweatpants culture it’s accelerated tipped Brooks Brothers over a cliff. In June, Brooks announced it would close three of its factories and lay off 700 workers. In July, it filed for bankruptcy. In August, it was sold to a group known for snatching up famous but troubled brand names at bargain prices. For more than a century, Brooks Brothers defined fashion for a certain kind of East Coast American elite. It’s been the clothier to nearly every U.S. president. So how did it get here?”

Bloomberg: New York Region Sees 40% Bankruptcy Surge, Braces for More

Bloomberg: New York Region Sees 40% Bankruptcy Surge, Braces for More. “The pandemic has battered New York City businesses, with almost 6,000 closures, a jump of about 40% in bankruptcy filings across the region and shuttered storefronts in the business districts of all five boroughs. It’s going to get worse.”

Bloomberg Law: Bankrupt Chuck E. Cheese Parent Wants to Shred 7 Billion Tickets

Bloomberg Law: Bankrupt Chuck E. Cheese Parent Wants to Shred 7 Billion Tickets. “Chuck E. Cheese’s parent company asked a bankruptcy court to approve settlements to destroy 7 billion paper Prize Tickets that have built up in the company’s supply chain as a result of the Covid-19 pandemic. CEC Entertainment Inc.’s vendors now hold ‘enough tickets to fill approximately 65 forty-foot cargo shipping containers,’ according to CEC’s emergency motion filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.”

New York Times: Small-Business Failures Loom as Federal Aid Dries Up

New York Times: Small-Business Failures Loom as Federal Aid Dries Up. “The United States faces a wave of small-business failures this fall if the federal government does not provide a new round of financial assistance — a prospect that economists warn would prolong the recession, slow the recovery and perhaps enduringly reshape the American business landscape.”

Pascha: One of Europe’s biggest brothels goes bust (BBC)

BBC: Pascha: One of Europe’s biggest brothels goes bust. “The 10-floor Pascha is a major landmark in the city of Cologne. ‘We are at an end,’ the brothel’s director, Armin , told local paper Express. Prostitution has been outlawed in the state of North Rhine-Westphalia since the outbreak of the virus. Some 120 prostitutes usually work at Pascha. It employs around 60 staff including cooks and hairdressers.”

CNN: 300 Pizza Huts are closing after a giant franchisee goes bankrupt

CNN: 300 Pizza Huts are closing after a giant franchisee goes bankrupt. “Up to 300 Pizza Hut restaurants are slated to permanently close following the bankruptcy of one the chain’s largest franchisees. NPC International, which filed for Chapter 11 in July, announced an agreement [August 17] with Pizza Hut’s owner Yum! Brands (YUM)to close roughly a quarter of its restaurants and sell the remaining locations.”

CNN: Virgin Atlantic files for bankruptcy in the US to secure its rescue deal

CNN: Virgin Atlantic files for bankruptcy in the US to secure its rescue deal. “Virgin Atlantic has filed for bankruptcy in the United States as it races to finalize a $1.5 billion plan to rescue it from the aviation industry’s worst crisis. The company, which is based in the United Kingdom, filed for Chapter 15 bankruptcy protection in New York on [August 4], which shelters the US assets of foreign companies undergoing restructuring proceedings in their home country.”

Two more retailers file for bankruptcy: Lord & Taylor and Tailored Brands (Washington Post)

Washington Post: Two more retailers file for bankruptcy: Lord & Taylor and Tailored Brands. “Two more retail icons have filed for Chapter 11 protection, joining more than a dozen major brands that have tipped into bankruptcy as pandemic-fueled store closures sent sales plummeting. Lord & Taylor, the nation’s oldest department store chain, filed for bankruptcy protection on Sunday and said it is searching for a buyer. Hours later, Tailored Brands, the parent company of Men’s Wearhouse and Jos. A. Bank, followed suit, saying the pandemic had forced a reckoning. The company recently announced it would lay off 20 percent of its corporate workforce and close as many as 500 stores to cut costs.”

CNN: Big chains filed for bankruptcy and closed stores every week in July. Here are 9 of them

CNN: Big chains filed for bankruptcy and closed stores every week in July. Here are 9 of them. “Coronavirus, massive amounts of debt and a shift in shopping habits created a lethal cocktail of bankruptcies and store closures in July. So far this year, 21 private and public retailers have filed for Chapter 11 according to BankruptcyData.com. That’s more than double the number that filed for the same time period last year. In total, 20 retailers filed for bankruptcy protection in 2019.”

CNN: Ascena, owner of Ann Taylor and Lane Bryant, files for bankruptcy

CNN: Ascena, owner of Ann Taylor and Lane Bryant, files for bankruptcy. “Ascena Retail Group, the owner of Ann Taylor and other clothing brands, has filed for bankruptcy. It’s the latest retailer forced to take that step during the Covid-19 pandemic. The company, which has been struggling long before coronavirus struck, said it would close all of its Catherines stores, a significant (but undisclosed) number of Justice stores and a smaller number of Ann Taylor, LOFT, Lane Bryant and Lou & Grey stores.”

New York Times: Federal Aid Has So Far Averted Personal Bankruptcies, but Trouble Looms

New York Times: Federal Aid Has So Far Averted Personal Bankruptcies, but Trouble Looms. “As of mid-June, the Treasury Department had issued nearly $270 billion worth of stimulus payments to some 160 million people. Unemployment benefits, which normally average about $340 a week, were temporarily increased by $600 a week. Some unemployed people now have more income than when they were working. But those benefits are set to expire this month.”