Image-Big-Business-Closure

What’s the truth about big business closure?

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What is happening in today’s economy is no longer a joke. Most businesses have changed their plans across industries. While my company deals with travel and expense software. Right now, they have not declared anything like closure or bankruptcy. I believe they have handled business continuity plans and “SafeNet” on company expenses. However, a lot of businesses today have experienced major decisions in closing or filing for bankruptcy for their protection.

Let’s take a look at the truth about all of them.

What’s the “Truth” about all this list?

1. Victoria’s Secret declared bankruptcy.

True. Victoria’s Secret’s global interim chief executive said in a statement that the aim was to renegotiate leases or sell the loss-making division entirely as part of a turnaround plan for the lingerie retailer. L Brands, which has seen profit fall consistently since 2016, reported net losses of $366 million for the year ending Feb. 1 on sales of $12.9 billion.

Image Source: pixabay.com

But its not the COVI-19 reason why they were in bankruptcy. In fact according to Itzone, the business situation of Victoria’s Secret has encountered many problems over the years, seriously affecting sales even though it was a brand that many people aspire to. Even in 2019, their most famous show – Victoria’s Secret show was canceled.

However, the “re-management” does not necessarily make its name disappear in the market. If properly restructured, a company can fully revive. Moreover, Victoria’s Secret has only closed stores in the UK, while in the US and online business is not affected.

2. Zara closed 1,200 stores.

True. According to The Guardian, “the total store count will fall from 7,412 to between 6,700 and 6,900 after the reorganization, which will also include the opening of 450 new shops.”

Image Zara
Photo by Taras Abbat on Unsplash

3. La Chapelle closure

Undetermined. It was last 2019 but it was not about COVID-19. According to YICA Global, Chinese Ladies Fashion Brand La Chapelle Closes 2,470 Stores, Leases Out Headquarters

La Chapelle Store_image

4. Chanel is facing difficulty.

Undetermined. This is the term. While the secretive company has such tremendous growth in the business for years is not an exemption to what is happening nowadays. Even if it’s not true that they were discontinued, according to the Financial Times, Chanel will still have difficulty for the next 2 years of business.

Chanel_Image_Perfume
Photo by Olena Sergienko on Unsplash

5.Hermes is discontinued.

True. Too bad for what is happening, and Hermes has shut down its production and all its facility in France until further notice.

Hermes-Image-Store
Photo by Modern Affliction on Unsplash

6.Patek Philippe, is discontinued.

Undetermined. Patek Philippe discontinued production ONLY on specific dates. Patek Philippe followed suit and announced that it will be closing its manufacturer from March 18 to March 27 in support of the country’s efforts to implement social distancing. The watchmaker will be closely monitoring the situation and may extend this closure period if necessary.

7.Rolex, discontinued.

Undetermined. discontinued production ONLY on specific dates. Rolex just announced it will be suspending production of its manufactures in Geneva, Bienne and Crissier, Switzerland, for 10 days beginning March 17. The watchmaker is taking precautions to protect its employees as the number of confirmed cases in Switzerland continues to rise.

Rolex-Image-Store
Photo by Anastasia Dulgier on Unsplash

8.The world’s luxury industry has crumpled. Yes this is absolutely true. As people are stocked at home and they are not allowed to go our due to virus scare, nobody will go to the malls and shops for luxurious brands anymore.

9. Nike has lost a 790M

Nike has lost a $790 million preparing for the second stage of layoffs. CEO John Donahoe said, “We will soon be forced to make some difficult choices that will likely result in a net reduction of jobs,” said the email sent late Thursday, according to Complex Magazine.

Nike-Image-Store
Photo by
Freddy Do
on Unsplash

10. Gold’s gym filed for bankruptcy.

True. Like many other luxury brands, Golds is another addition to the facilities that will be closing for protection. They are filing bankruptcy protection. “This has been a complete and total disruption of every one of our business norms, so we needed to take quick, decisive actions to enable us to get back on track,” chief executive Adam Zeitsiff said in a video statement.

GoldsGym-Image-Man-at-the-gym
Photo by Jesper Aggergaard on Unsplash

11. Airbnb, business closure.

True. The founder of Airbnb said that because of the pandemic, 12 years of effort were destroyed in 6 weeks. It is a pandemic that has a strong influence on tourism, including the operation of AirBnb. But looking deeper, AirBnb has been reporting constant losses for years. In the first quarter of fiscal 2019 alone, their losses doubled to $ 306 million. This is according to itzone.

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Photo by Kelsey Dody on Unsplash

12. Starbucks business closure.

Even Starbucks also announced to permanently close its 400 stores. It is hard to accept how this multi billion coffee chain to close down during this time. “This repositioning will include the closure of up to 400 company-operated stores over the next 18 months in conjunction with the opening, over time, of a greater number of new, repositioned stores in different locations and with innovative store formats,” the company wrote in its filing.

StarbucksImage-closure
Photo by Eloise Ambursley on Unsplash

13. WeWork Closure

WeWork isn’t in a great spot either. Leaked WeWork document reveals a huge reorg underway for people who manage its buildings. Here’s how the new structure works — and the complex process for staff to save their jobs.

WeWork-Image-Closure
Photo by Eloise Ambursley on Unsplash

Every day, a new list of business closure is changing the market outlook. It’s either they are revamping their organization, leasing out a cheaper building, laying-off employees, lowering down working hours, filing for bankruptcy, or worst case shutting down their businesses.

Our economy is looming as the new COVID-19 positive cases arise in many parts of the world. While we wait for the flattening down of the recovering we are waiting for fort he establishment of the vaccine that will ease down the worries of the economy of the world.

Hi, my name is Jack Marbida, I am a financial advisor from Sun Life Financial for over 4 years now. My goal is to help thousands of Filipino people understand and embrace the spirit of financial preparation through our program, “Financial Freedom”. I know you need help but you just don’t know where to start. Allow me to help you establish a brighter future. Click here for more information. Check what I have been doing here.

27 thoughts on “What’s the truth about big business closure?

  1. It is very sad to hear all these news. Many Major Companies Filing for Bankruptcy Due to Coronavirus. Even most 80% of startup are already shut down. I am hoping for everything will be fine soon

  2. I’ve been following many of the above brands and companies in their own journey to survive through this trying situation. It is devastating, as the companies are the people who run and make the business happen.
    But new ways of doing business are on the way. It does take time for the effort to begin bringing the fruit.

  3. This is devastating news. The Pandemic is really hit economic badly. It’s very hard to hear such a titan companies like you mention getting a big loss. While their CEO or board probably still living comfortably, the real victims is their millions worker with minimum wage. I hope we can survive this pandemic.

  4. Wow, so many major businesses!! It appears that businesses with any type of financial difficulties were taken into the red because of covid! Interesting!

  5. These events are so sad to hear. I hope the world could recover from this crisis as soon as possible.

  6. I feel bad for these companies.starting up a business is hard but turning it into a brand takes hard work,patience, dedication and spending money to promote that brand.

  7. This is very sad new for all of us. These big brands even suffering and think about small startups. And yes it is very hard to accept but this is the truth. This too shall pass.

  8. The economy will have severe losses caused by this pandemic – I sure hope things can get back to normal soon 🙂

  9. This is so sad!! I can’t believe how many stores are closing. Thanks for sharing this! had no clue about many of these

  10. This year is really terrible for all of us because of the pandemic all business are affected including my work as Admin staff on the hotel I hope our economy will be recover soon keep faith not losing hope for these hard times.

  11. Glad you shared this with us..this is truly very helpful and interesting one..great work though…Business is really very badly affected especially this time..

  12. It is sad to hear. A lot of big companies mean stability for me: I am used to the names ever since I was little, it’s hard to see them go.

  13. These list is unbelievable but it’s the truth and we don’t have any choice but to believe. These big companies is really on the verge of a big business problem then the Covid-19 happened as to make this even worst. Thanks for this amazing information, it’s very sad to know but it’s the truth I may say again..

  14. Any company that still operatesand is able to employ people is amazing. People should learn to give thanks and value these companies coz it is hard staying afloat these days.

  15. How sad, my favorite Victoria Secret shuts down 🙁 Business is really not doing well these past few months except those industries related to basic necessities.

  16. So many business are changing the business plans to try and stay afloat. It’s so sad how much COVID has changed nearly every aspect of how modern day society is running.

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