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San Diego Bankruptcy Filings Increase Due to Coronavirus 

Why Do Most People Declare Bankruptcy?

Many companies in San Diego and throughout California are filing for bankruptcy due to the Coronavirus pandemic. The coronavirus has also resulted in nearly 30 million Americans losing their jobs. The decline in disposable income and a massive decline in consumer confidence has caused many businesses to shut down or file for bankruptcy. Experts have seen an increase in bankruptcy filings and they anticipate more to come as shutdowns continue in many U.S. states.

The Hardest Hit Industries Will Experience Bankruptcy Filings

Nearly every San Diego company and industry has suffered as a result of Coronavirus. Forest products, retail stores, consumer products, and transportation industries will suffer the greatest financial hit, however. In the retail industry, economists have run stress tests that suggest that without intervention or material action, the following companies will likely be the most at risk:

  • Nordstrom 
  • Kroger
  • Children’s Place
  • Best Buy
  • Lowe’s

Travel Companies Have Suffered Exponentially Due to Coronavirus

The airline industry and transportation industries have also suffered financially during the pandemic. As of right now, many states have still enacted stay-at-home orders that ban traveling. Even after states and countries lift their travel bans, many consumers will not be confident enough to travel, especially as experts have predicted that a second wave of coronavirus will happen in the fall. 

AMC Theaters in San Diego May File for Bankruptcy

San Diego is home to 9 AMC theaters that remain closed after San Diego County issued the closure of all non-essential businesses to stop coronavirus from spreading. AMC theaters could file for bankruptcy protection if they do not receive enough federal help, and depending on how long San Diego remains under a shutdown order. The following other companies might also file for bankruptcy in San Diego:

  • Neiman Marcus
  • 24 Hour Fitness
  • J.Crew
  • Rite Aid
  • Neiman Marcus
  • JCPenney
  • Gap Inc.
  • All department stores, especially those who do not have an active online retail presence

Most Large Companies Will File for Chapter 11 Bankruptcy

Those companies that file for Chapter 11 bankruptcies in San Diego will be able to reorganize to reduce their debts. Smaller San Diego companies might need to file for Chapter 7 bankruptcy. After Chapter 7 bankruptcy, the company will liquidate its assets to pay off its creditors. A bankruptcy trustee will sell off their unsecured debt. 

American consumers drive 70% of the economy. When stores close abruptly, the shutdowns deeply affect the country’s economic health. Hundreds of thousands of retail workers have suffered furloughs. 

If You are Facing a Bankruptcy in San Diego, Our Lawyers Can Help

If your San Diego business is facing bankruptcy due to the coronavirus shut down, you need an experienced legal team on your side. The Bankruptcy Law Center is a San Diego Bankruptcy Law firm with the experience needed to help our clients restore their financial independence. Contact our law firm today to schedule your initial consultation. 

See What Our Clients Have To Say

Yelp Review

Roger C.

I reached out to BLC to help assist with a chapter 7 business bankruptcy and they provided excellent guidance, advice, and support through the entire process. In my case an adversarial action was filed by one of the creditors and attorney Ahren Tiller and his staff provided sound ...arguments which prevailed. Couldn’t have found a more experienced and supportive team to represent me in a tricky situation. I would highly recommend them to anyone making the difficult but sometime necessary decision to find financial relief. Read more
Yelp Review

Justin R.

Like many others before and during the pandemic, life happenings caused me to be in a financial situation to warrant bankruptcy. The BLC was super professional all the way through the entire process. Right after I paid for my Bankruptcy, I got sick and had to have surgery and recovery. Then we ...were in full Pandemic mode. They were gracious to delay my filing until I was recovered and ready to file. I could not ask for more. The process was over all quick and painless for a simple Bankruptcy like mine. I feel a weight has been lifted and I can rebuild. Thank you for all your arduous work and patience, Gabriel, Ahren, and their teams are knowledgeable and efficient. Read more
Google Review

Katey Huntley

Responsive, friendly, kind, extremely easy to work with! So knowledgeable and made this entire process painless. Very grateful!

Google Review

Lynn Molina

Gabriel Hanna, Esq and the staff at BLC helped me in a very difficult time. I appreciate all the help and care they gave my case.

Google Review

Linda Cramer

I can’t say enough of how much this bankruptcy law firm helped me with my financial situation. They were all so helpful, efficient and made the difficult time and process as quick and easy as possible. I would recommend them to anyone I know and am glad to give my public recommendation as well. T...hey truly deserve a five star plus rating. Read more
Yelp Review

Andrea N.

I am very happy with my experience with BLC. Bankruptcy is not something anyone wants to go through, however everyone at BLC made my experience pleasant and easy. The process was explained thoroughly and I had an easy time reaching out and connecting with my attorney. Anika Renaud-Kim was my attorney ...and she was nothing short of amazing! She was very patient and generous with her time. Ms. Renaud-Kim definitely made me feel at ease and comfortable through the entire process. Read more
Facebook Review

Lidia Paramore

they did a great job for me, helped me anytime I needed something, my Lawyer Gabriel Hanna is the best, gave lots of confidence all the time..thanks BLC I will.always recommend you, I’m very grateful for your service!!!

Yelp Review

Rachael C.

When searching for information I had called a few different firms and received consults. BLC was the only one who didn’t shy away and provided answers and information during the consult. Once I agreed to move forward, they were supportive, informative, and eased my anxiety through the whole process.... I can’t recommend them enough. Read more
Google Review

Emily Martinez

AmazingI had many questions and uncertainties and the carefully explained it all and made it easy to understand. They facilitated a fast and easy process making this scary difficult thing simple

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Legal Disclaimer: The Bankruptcy Law Center is a California Licensed law firm with attorneys licensed in the state of CA, NY. Attorney Ahren Tiller is responsible for this advertisement. Bankruptcy Law Center’s principal office is located at 1230 Columbia st. Suite 850 San Diego, CA 92101. Prior results listed on this site do not depict or in any way infer a prediction or outcome.We are a debt relief agency proudly providing options to people with financial problems. View our Privacy Policy

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