Which Industries Are Most at Risk During the Coronavirus Pandemic?
If the stock market is any indication of the health of the economy, the United States is on the precipice of a major downturn. The recent coronavirus pandemic has led many state and local governments to impose restrictions on their residents and local businesses. Many people are sheltering in place and only going outside to shop for groceries or pick up medicines.
During these troubled times, many businesses are sure to get walloped. Below, we identify some of the industries likely to be hardest hit, and we encourage you to consider how best to deal with your business debts.
Being in tight quarters can spell disaster when a contagious virus is introduced. We have already seen this with the Diamond Princess, where almost 1 in 5 passengers were infected when a person infected with COVID-19 came aboard. Of the nearly 700 people infected, 7 have currently died. Fortunately, about half of those infected had no symptoms.
Many cruise ships have responded by announcing that they are suspending cruises. This will certainly hammer their finances. As CNBC reported, Royal Caribbean estimates they will see a 12% drop in earnings this year with all the cancellations. Other cruise lines will likely see similar declines.
Restaurants & Bars
Miami and nearby cities have not completely shut down restaurants to prevent people from gathering. Other cities have adopted these draconian measures. Of course, only time will tell. Miami might feel the need to adopt the same policies very soon.
In any event, fewer consumers are heading out to eat, preferring to shelter in place. Even if people order takeout, many restaurants and bars will see a steep drop in business during this pandemic. Unfortunately, wait staff and cooks will also be hammered.
Many theater chains have struggled for years, and the recent pandemic has given consumers another reason to stay home and watch Netflix instead of eating popcorn in a darkened theater. Many chains have voluntarily closed, although they initially resisted. AMC theaters, for example, tried to stay open by reducing capacity by 50%. Ultimately, however, they decided to shut their theaters entirely—a decision that will undoubtedly have dramatic financial repercussions.
This is another sector that has struggled in recent years, thanks to the rise of e-commerce. With so many people staying home, we anticipate that many consumers will shift even more of their buying to online retailers like Amazon. We hope that small businesses already have a web presence so that they can reap the benefits of increased digital foot traffic, otherwise sales could plunge.
Is Your Business Struggling? We Can Discuss Whether Bankruptcy is Right for You
Family and small businesses are especially vulnerable during this pandemic. If you are worried about being able to pay your business debts, you should discuss a possible bankruptcy with Nowack & Olson PLLC. Our Plantation bankruptcy attorneys have assisted many businesses with seeking bankruptcy protection, and we have extensive experience with Chapter 7 liquidations and Chapter 11 workouts.
Please contact us today to schedule an initial consultation. You can call 888-813-4737.