In the wake of Covid-19 many companies are feeling the strain on their operations and the reapers shadow of bankruptcy looms ever closer for some.
Airlines, with their paper thin margins, many thought would be the first to go, Thai Airways rumoured about to go into bankruptcy protection (at time of writing) notwithstanding.
In the past weeks however, American retailers J Crew and most recently JCPenney have filed for bankruptcy. Diamond Offshore drilling did the same, citing debts of over $2.5B. These are by no means tinpot organisations, just those that have been hit early and hard by a macro level shock.
Many will claim that this culling of the herd is a natural and fundamental part of a capitalist economy, a survival of the fittest mentality. With statements like that we can emotionally and cognitively distance ourselves from the real victims of this, the employees, and their families for which they provide.
It is hard to imagine we have seen the last of this wave of bankruptcies.
