Impact of COVID-19 on Small Businesses Failures

The financial news is replete with stories of big companies going bankrupt. Companies that filed bankruptcy this year include Remington Arms, Brooks Brothers, Barneys, Hertz, McDermott International, Ascena Retail Group (Ann Taylor and Lane Bryan brands), J.C. Penney Co., Pier 1 Imports, and many more.

An article in Bloomberg reports that many small businesses are disappearing by the thousands, but without filing bankruptcy. Yelp says that as of July 10, 2020, 132,850 firms listed on yelp remain closed due to the COVID-19 pandemic and that 55% of the closures (72,842 businesses) will never reopen again. Will your business open this year? Next year?

small business closure

Sorry We’re Closed

If you have been forced to close your small business, you may have personal liability for any debt you guaranteed personally. If you have business loans that you guaranteed for your closed business, call Gort Law today at 561-900-0478 to schedule your free consultation to review your options.