By Divya Gottiparthy
A growing number of companies are filing for bankruptcy in 2020, due to the coronavirus impending a sense of paranoia in the masses. As of now, the online industry is booming, but many airlines, local retail stores, and dine-in restaurants have taken a big hit.
While many businesses can pivot towards online ventures and deliveries, the majority of them reported a tremendous drop in revenue over the past couple of months, and many employees were affected firsthand by this stoop in economic activity. Bankruptcy is not the epitome of downfall for a business, but many times it can weaken them to the point of no return.
Some may say that COVID-19 has provided a tremendous amount of opportunity for people due to the exponential growth in issues and problems that have arisen.
“COVID-19 actually helped the business industry because so many lifestyles changed. Now, there are so many more opportunities that opened that can be provided to the people because the more problems, the more business there will be to solve the problem,” said junior Serena Sajumon.
Economic deficit is not always the end of a business' life, but it may manifest into hardships for employees, especially those earning minimum wage. Conditions for employees, especially for those who work in fast food joints and service-based businesses, are under strict conditions because of all of the extensive safety precautions that need to be taken.
“Going to work now has definitely been tougher than work was before COVID hit. Many people got laid off due to COVID, so each person now gets more work. On top of that, we have to wear masks and shields for multiple hours straight, which hasn’t been the most convenient but is definitely necessary,” said senior Cindy Cho.
With the current pandemic, lack of employment has been a concurring issue that impacts many people. The pandemic has made working environments within businesses uncomfortable and often very tough for employees. Local businesses face even more problems, such as not having total autonomy over their facilities. These hardships, combined with a steep decrease in business over the past six months, have made local businesses fall into difficult times as they struggle to pay their employees and stay afloat.
Within New Hyde Park alone, many large businesses have been struggling to maintain sufficient revenue, especially when a large part of their profits are driven directly from retail.
Artwork by Shadia Zayer
Many local businesses and large retailers have filed for bankruptcy due to the pandemic.
In the past six months, Modell's Sporting Goods, Sears and Forever 21 all filed for bankruptcy. Forever 21 originally filed for Chapter 11 bankruptcy, which means that the company is on the road toward bankruptcy. The popular clothing company has suspended production in 74 countries. Forever 21 has taken the initiative to close down retail stores in distinct locations, and primarily obtain their income through commercial advertising and online marketing. Customers can still buy products from Forever 21; however, the local or retail store in the mall may be scheduled for closing in the next month or so. Numerous companies are in the same situation, causing a temporary shutdown in retail marketing.
Entrepreneurs and businesses have been hit hard with COVID-19, and people's lifestyles have changed tremendously because of this pandemic. Things will continue to change, and only time will tell how much more of an impact this virus will have.