Bankruptcy

After 194 years in business, the American department store chain Lord & Taylor is closing all its 38 remaining stores after filing bankruptcy on August 2 and has begun liquidation sales.

"While we are still entertaining various opportunities, we believe it is prudent to simultaneously put the remainder of the stores into liquidation to maximize value of inventory for the estate while pursuing options for the company's brands," so Lord & Taylor's chief restructuring officer Ed Kremer.

Cirque du Soleil has filed for creditor protection under the Companies' Creditors Arrangement Act in Quebec, Canada on Monday. The Montreal-based company stated that the Covid-19 pandemic had caused "immense disruption and forced show closures," including six shows in Las Vegas and 10 shows on tour worldwide.

"For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization. However, with zero revenues since the forced closure of all of our shows due to COVID-19, management had to act decisively to protect the company's future," so president and CEO Daniel Lamarre said in a statement.

Cirque du Soleil has received $300 million in funding from Quebec's major institutional investors and multinational private equity firms to "support a successful restart, provide relief for Cirque du Soleil's affected employees and partners, and assume certain of the company's outstanding liabilities."

The company also announced the termination of approximately 3,480 employees previously furloughed in March.

Chuck E. Cheese, an American family entertainment center chain, is approaching bankruptcy and is in talks with lenders about financial deals. CEC Entertainment Inc., parent company of Chuck E. Cheese, has a debt of almost $1 billion and hopes to secure $200 million in loans.

Hertz, the car rental company operating 10,200 corporate and franchisee locations all over the world, has filed for bankruptcy protection, excluding operations in Europe, New Zealand and Australia. Amid the Covid-19 pandemic, the company saw a sharp decrease in rentals and was not able to continue to pay its lenders. A company spokesperson said they would use over $1 billion in cash on hand to continue running its business during the bankruptcy process.

JC Penney, American department store chain, has filed for bankruptcy protection and is said to close some of its stores. The company currently has over 800 stores and around 85,000 employees. JC Penney is the third big retailer, after Neiman Marcus and J.Crew, to declare bankruptcy amid the Covid-19 pandemic.

Colombian airline Avianca, the world's second-oldest airline, has filed for Chapter 11 bankruptcy. According to a statement on its website, the airline cited "unforeseeable impact of the Covid-19 pandemic" as the reason for its decision. After the impact of the pandemic cut 80% of the airline's income, 20,000 employees have been put on unpaid leave.