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.
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.
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.”
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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