Information about dozens of world giant companies went bankrupt on social media. The company went bankrupt due to the Covid-19 pandemic.
- Victoria’s Secret declared bankruptcy.
Victoria’s Secret announced in May that it would permanently close 250 of its stores in the United States and Canada. The closure was the impact of the Covid-19 pandemic.
Reported by Forbes, Victoria’s Secret will close 235 US Victoria’s Secret outlets and three Pink outlets. The other 12 closed were in Canada. Then Victoria’s Secret net sales fell 46 percent to USD 821.5 million.
In addition to closing 250 Victoria’s Secret outlets, L Brands, which also owns Bath & Body Works, closed 50 of its outlets. Bath & Body Works during the first quarter of 2020 decreased 37 percent to USD 1.65 billion, compared to the same period last year. In total, sales at Bath & Body Works fell 18 percent to USD 712.7 million.
- Zara closed 1,200 stores.
The fashion company that houses Zara’s fashion label, Inditex, will close 1,200 outlets worldwide. The closure of these retail stores due to decreased sales due to the Covid-19 pandemic is true.
Reporting from ANTARA on June 15, 2020, in March, the company announced it intends to close 3,785 stores globally as sales in retail stores have decreased. Three months later, the company released a statement explaining its plans to increase sales online, but in the process hundreds of retail stores will be closed as part of this plan.
However, during the first quarter of 2020 between February 1 and April 30, Inditex sales fell by 44 percent, while 88 percent of its stores remained closed. During the first quarter, the company recorded a net loss of up to 409 million euros, or approximately IDR 6.5 trillion. However, online sales are said to have increased by up to 50 percent.
The company also stated that retail store sales have recovered gradually, since reopening in the second quarter with certain prominent markets such as China, South Korea and Germany. Apart from Zara, Inditex also houses other brands such as Zara Home, Massimo Dutti, Bershka, Pull and Bear, and Oysho.
- La Chapelle withdrew 4391 stores.
According to the 2019 annual report the company Xinjiang LaChapelle Fashion, a Shanghai-based clothing company, has reduced the number of domestic retail outlets from 9,269 to 4,878 between the end of 2018 and December 2019. This marks the closure of 4,391 outlets.
However, the closure in 2019 occurred before the coronavirus pandemic. The first outbreak of Covid-19 was detected in the Chinese city of Wuhan on December 31, 2019.
- Chanel and Hermes was discontinued
French fashion house Chanel decided to progressively close its factories in France, Italy and Switzerland for two weeks starting from March 18, 2020.
According to a wwd.com report on March 18, 2020, “Chanel made the decision, in accordance with the latest government guidelines, to completely shut down its production sites.” However, some distribution locations maintain minimal employee attendance, following protective measures.
- Patek Philippe discontinued production.
The Swiss watchmaker Patek Philippewas reportedly “closed its production site and headquarters” from March 18 to March 27 2020. However, the report said the date was “subject to re-evaluation”.
In an emailed statement to AFP, the company announced on 27 April 2020, that Patek Philippe will reopen its production facilities and all other departments on Monday 27 April 2020, with reduced daily working hours and staff attendance on site, following a recommendation by the Swiss Government. All employees who are already working remotely will continue until further notice.
- Rolex discontinued production
Rolex has just announced that it will suspend production at its manufacturers in Geneva, Bienne, and Crissier, Switzerland, for 10 days starting March 17, 2020.
The watchmaker is taking precautions to protect its employees as the number of confirmed Covid-19 cases in Switzerland continues to increase. - Nike has a total of USD 23 billion US dollars preparing for the second stage of layoffs.
The explanation regarding NIKE preparing to fund USD 23 billion ahead of layoffs is described in a CNBC article entitled “Nike CEO John Donahoe tells employees that layoffs are coming” on June 26, 2020.
In the CNBC article, it was explained that NIKE had experienced a 38 percent decline in sales and a loss of USD 790 million since Covid-19 hit almost all countries in the world. Then Nike shares fell 6 percent in Friday afternoon trading. The stock has a market value of nearly USD 150 billion.
NIKE CEO, John Donahoe, emailed employees to warn them that layoffs would be becoming.
“We were forced to make some difficult choices that might result in job cuts,” John Donahoe wrote in an email, according to Complex Magazine.
Even so, several shops began to open. And it looks like it will continue through online sales. One bright spot for the Nike quarter was digital sales, which jumped 75 percent. Online sales are around 30 percent of its total business which reached USD 5.5 billion in sales in fiscal 2019.
“We are building a flatter, more agile company and transforming Nike more quickly to define future markets. We are diverting resources and creating the capacity to reinvest in areas of our highest potential, and we anticipate our realignment will likely result in job losses. , “Nike said in a statement to CNBC.
- Gold’s gym filed for bankruptcy
The explanation regarding Gold’s Gym filing for bankruptcy is described in a BBC article entitled “Gold’s Gym files for bankruptcy protection” on May 5, 2020.
Gold’s Gym filed for protection from bankruptcy due to the impact of the Covid-19 pandemic. According to the gym company, the move means the permanent closure of 30 company-owned gyms.
More than 700 gyms operate worldwide under the Gold brand, most of which are franchises. And it is not yet known how many employees will be dismissed.
Adam also assured his customers and employees that the company plans to step out of bankruptcy protection in August.
- The founder of Airbnb said that because of the pandemic, 12 years of efforts were destroyed in 6 weeks.
The explanation regarding the closure of Airbnb, which was built 12 years ago, then collapsed in just 6 weeks, was explained in a BBC article entitled “The Coronavirus collapses the Airbnb business in weeks, a business built in 12 years” on July 3, 2020.
In the BBC article, it was explained that Airbnb’s Director and Founder, Brian Chesky, has been building the business for 12 years.
Then Chesky exposed the problems faced by Airbnb and predicted the future of his business, which he said would be “very different” from what we know today.
The crisis due to Covid-19 hit Airbnb in early March when tourism came to a halt amid lockdown rules around the world.
The practical quarantine left the travel industry almost paralyzed.
So it’s “no surprise” that Airbnb lost their business in a matter of weeks, said Chesky.
The coronavirus has caused Airbnb to reduce their costs by laying 1,900 employees, about 25% of the total, and cutting budgets such as marketing.
