The Big Apple Bite Down 😷
The Big Apple Bite Down
From the time the world was introduced to the coronavirus, there were two big questions on everyone’s mind. The first being “how deadly and/or dangerous is this virus?” The second question investors asked is “how will this affect businesses around the world?”
The results are in. According to Bloomberg, bankruptcies in the New York City region have surged 40% during the pandemic. From March 16th to September 27th, 610 businesses filed for bankruptcy in the Southern and Eastern Districts of New York.
One of the reasons why people tend to visit the New York City region is to shop or eat at their numerous restaurants and stores. Retailers and restaurants are among the industries who were hit the hardest from the pandemic forcing big name companies like Chuck E. Cheese and Neiman Marcus to file for bankruptcy.
It’s also worth noting that New York City was the epicenter of the virus in March. This had a serious toll on travel demand in the city and has caused many wealthy residents to relocate to the suburbs.
With the winter season approaching along with a forecasted second wave of coronavirus cases, a new series of bankruptcies and permanent closures is expected. Time will only tell how much worse things can possibly get.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.