US commercial bankruptcies up 33% amid coronavirus pandemic
Lord & Taylor files for bankruptcy; Microsoft in talks to buy TikTok
Fox Business Briefs: Luxury department store Lord & Taylor files for bankruptcy one year after closing its 11-story flagship building on New York’s Fifth Avenue; Microsoft in talks to buy the popular video app TikTok.
The number of U.S. businesses that have sought relief in bankruptcy court is up 33% to date compared to pre-pandemic times, according to new data compiled by legal service firm Epiq.
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Chapter 11 bankruptcy filings in the first three quarters of 2020 have totaled 5,529, according to Epiq's latest bankruptcy filing report. By comparison, filings for 2019 had totaled 5,519, the data showed.
In September alone there were 747 new filings, a sharp increase of about 78% from the same period a year ago, according to the report.
The figures indicate that more owners are contemplating the possibility of bankruptcy despite the billions of dollars in coronavirus relief targeted at small businesses this year by the federal government.
CORONAVIRUS COULD PUSH US BANKRUPTCIES TO WORST LEVELS IN 10 YEARS
The funds, offered through the Paycheck Protection Program, did not keep some from ending up in bankruptcy court.
Deirdre O’Connor, managing director of corporate restructuring at Epiq, said the filings are "primarily small businesses that do not have access to capital or stimulus."