The pandemic has impacted life in nearly every way imaginable. The financial impact of COVID-19 for businesses and people is enormous. As the months have gone on, companies have furloughed employees, people have lost their jobs permanently and many businesses have shut their doors for good.
Many of these businesses have filed for bankruptcy. CBS News reports the financial troubles of well-known companies such as JC Penney, 24 Hour Fitness and Neiman Marcus. Each business has filed bankruptcy due to lost revenue during the pandemic.
Bankruptcies where a reorganization plan is put into place, or Chapter 11 bankruptcies, have increased by 15 to 50 percent, according to a report from the Brookings Institution.
The report says small businesses that were already struggling last year were the most likely to close down during the pandemic and not reopen.
Stimulus checks and unemployment benefits helped many families get through the early months of the crisis, however many sources of assistance have stopped.
The Brookings Institution report said the “lapse in support” for families and firms can cause immense and lasting economic damage.