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The COVID-19 pandemic is sending various U.S. companies and other businesses into bankruptcy.
In the first half of 2020, there were 3,604 new commercial bankruptcy filings... a 26% increase compared to last year.
"We are seeing an acceleration in bankruptcies that is unprecedented," James Hammond, CEO of New Generation Research, told Fortune.
Hammond adds, the amount of assets involved in the bankruptcies this year have already surpassed the amount from the 2008 recession.
Fortune reports the top 10 industries with the most bankruptcy filings in 2020 are restaurants, construction and supplies, real estate, healthcare and medical, oil and gas, retail, transportation, agriculture, forestry and fishing, bank and finance, and telecommunications, according to BankruptcyData, a database of business bankruptcy information.
Source: BankruptcyData
Since March, at least 133 companies have filed for bankruptcy, citing COVID-19 as the underlying cause.
Bloomberg is keeping track of all businesses filing for bankruptcy.
Based off the companies assets, the top three largest companies to file for Chapter 11 are Hertz, Latam Airlines and Frontier Communications.
Source: Bloomberg
Filing a Chapter 11 means a company is struggling but not necessarily that it will stop operating.
Chapter 11 is meant to give companies an opportunity to restructure and decrease their debt.
But as the pandemic makes an alarming resurgence in the U.S. and many businesses are having to re-close, more might file for bankruptcy in the future.
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Other companies that have recently filed for bankruptcy during the pandemic include:
GNC: The decades old vitamin store filed in late June. About 20% of their stores will close.
24 Hour Fitness: The 24 hour gym chain filed in mid-June. All locations will be closing.
CEC Entertainment: Chuck E. Cheese's parent company filed in late June. The company plans to continue operating.
Lucky Brand: After filing in July, the denim company will close 13 of their 200 stores. The company also announced plans to sell to another conglomerate.
Brooks Brothers: The clothing company was already struggling before the pandemic. After filing in July, the company will close its three U.S. factories in mid-August and plans to search for a new buyer.
Sur La Table: This upscale kitchen shop is closing 56 of its 121 stores. The CEO plans to restructure and hopes the company will return "revitalized."
Ascena Retail Group- The parent company of Ann Taylor, Loft, Lane Bryant and other clothing brands is one of the latest to file. The company plans to close more than half of its stores.
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