Businesses 'just trying to close the books on 2020' as bankruptcy boom looms -Pittsburgh Business Times
James Newell, shareholder and chair of Buchanan’s Financial Institutions practice, is quoted in the Pittsburgh Business Times article, "Businesses 'just trying to close the books on 2020' as bankruptcy boom looms"
“Nationally, downtown hotels who cater to business people, I think, have a big challenge looking forward,” Newell said. “Travel has been curtailed drastically. Even when the crisis is over, you may see less business travel and they’ll continue to suffer. When the vaccine is distributed, things will change but there will still be a quarter and a half, maybe two, before we start seeing the impact of that.”
Retailers, particularly independents, are struggling. Despite strong Cyber Monday sales across the country, those who do not have sophisticated online capabilities will likely have great difficulties during the holiday season, typically their annual high point. Restaurants fall into this category as well.
“There hasn’t been a huge influx of local Chapter 11s, but what we’ve seen on a national scale is the big retail stores filing and looking into the crystal ball, with the holiday season upon us, that’s going to put even greater pressure on brick-and-mortar retailers,” Newell said. “They rely so much on holiday sales for annual revenue and Covid is going to have a significantly negative impact on that. I think you’ll see continued filings under Chapter 11 in the next quarter plus.”