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Maryland COVID-19 Business Bankruptcy Report: Which Companies Filed Bankruptcy in 2020?

 

Business Bankruptcy

The Coronavirus has disrupted economies throughout the world. From retailers to restaurants, it seems as if no one is immune to money problems.

Not only are individuals facing financial hardships, companies are filing for bankruptcy protection at an alarming rate. Here is a list of local and national companies that have filed Chapter 11 business bankruptcy in 2020.

Sur La Table Chapter 11 Business Bankruptcy Filing

Sur La Table Store

Locations in District of Columbia, Maryland and Virginia: Wisconsin Avenue (DC), Towson (MD), North Bethesda (MD), McLean (VA), Arlington (VA), Alexandria (VA)

Reasons for filing: Significant amount of debt; Decreased demand for luxury home goods

Sur La Table moving forward: Closed more than 50 underperforming stores; Will continue to sell goods online, in remaining stores and conduct cooking classes

GNC Chapter 11 Business Bankruptcy Filing

GNC Store

Locations in District of Columbia, Maryland and Virginia: Chappie James Blvd (DC), Tingey Street (DC), Fort Washington (MD), Clinton (MD), Oxon Hill (MD), Alexandria (MD), Andrews Joint Base (MD), Alexandria (VA – Beacon Center), Fort Belvoir (VA), Alexandria (VA – Hilltop Village), Springfield (VA), Woodbridge (VA – Potomac Mills)

Reasons for filing: Unable to refinance loans; Changes in operating environment; Decline in revenue

GNC moving forward: Close up to 1200 stores in Canada, Puerto Rico and 42 stores in the United States; Take initiatives to lower operating expenses

Brooks Brothers Chapter 11 Business Bankruptcy Filing

Men's Suits

Locations in District of Columbia, Maryland and Virginia: Connecticut Avenue (DC), National Harbor (MD), Hagerstown (MD), Chevy Chase (MD), Hanover (MD), Baltimore (MD), Clarksburg (MD), Queenstown (MD), Alexandria (VA), Arlington (VA), Woodbridge (VA), McLean (VA), Leesburg (VA), Richmond (VA), Charlottesville (VA)

Reasons for filing: Decreased demand for business suits; Customers work from home and prefer a relaxed style; Failure to adapt to changing trends

Brooks Brothers moving forward: Lay off more than 700 workers; Search for a buyer for the company; Close 20% of the company’s stores; Secured $75 million to continue operations

24 Hour Fitness Chapter 11 Business Bankruptcy Filing

Man Woman Working Out

Locations in District of Columbia, Maryland and Virginia: Lanham (MD), Falls Church (VA), Fairfax (VA), Vienna (VA)

Reason for filing: COVID-19 disrupted gym attendance; Forced to close gyms for months; Decline in membership

24 Hour Fitness moving forward: Secured $250 million in funding; Restructure balance sheet; Reinvest in existing clubs; Introduce new products and services

Chuck E. Cheese Chapter 11 Business Bankruptcy Filing

Chuck E Cheese's Store

Reason for filing: COVID-19 disrupted the business model; Decline in revenue; Prolonged closures due to state mandates and social distancing

Chuck E. Cheese moving forward: Close 34 locations throughout the United States; Offer carryout and delivery pizza services; Negotiate terms of existing debts

Lucky Brands Jeans Chapter 11 Business Bankruptcy Filing

Lucky Brand Jeans Store

Reasons for filing: Years of sluggish sales; Changes in consumer demand; Setbacks from the Great Recession; Multiple leadership changes; Retail industry changes

Locations in District of Columbia, Maryland and Virginia: North Bethesda (MD), Annapolis (MD), Columbia (MD), Leesburg (VA), Woodbridge (VA – Potomac Mills)

Lucky Brand Jeans moving forward: Close 13 stores; Sell company to SPARC Group

Sugarloaf Craft Festivals Business Bankruptcy Chapter 7 Bankruptcy Filing

Locations in District of Columbia, Maryland and Virginia: Germantown (MD)

Reasons for filing: No cash flow; Cancellations of large public gatherings; COVID-19 pandemic

Sugarloaf Craft Festival moving forward: The company closed its doors and liquidated its assets after 45 years.

Gold’s Gym International Chapter 11 Business Bankruptcy Filing

Locations in District of Columbia, Maryland and Virginia: (DC – 3rd Street SW), (DC – Connecticut Avenue), Capitol Heights (MD), Upper Marlboro (MD), Bowie (MD), Lorton (VA), Woodbridge (VA), Alexandria (VA), Arlington (VA), Bailey’s Crossroad (VA), Annandale (VA), Woodbridge (VA)

Reasons for filing: COVID-19 restrictions; Social distancing requirements led to extended closures; Inability to renegotiate gym leases

Gold’s gym moving forward: Sell company via an online auction; Furlough employees; Closed 30 gym facilities

This blog post is sponsored by Prepare My Chapter 7. We prepare Chapter 7 bankruptcy forms for people who file bankruptcy in Maryland, D.C. or Virginia (and other states) without a lawyer.

Explore the Prepare My Chapter 7 website to learn more about our non-attorney Chapter 7 bankruptcy services.

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