- Bankruptcies in the New York City region have surged 40% during the pandemic, according to Bloomberg.
- The news outlet reported that 610 businesses filed for bankruptcy in the Southern and Eastern Districts of New York from March 16 to Sept. 27.
- Another flurry of bankruptcies and permanent closures is expected as cold weather arrives.
The crisis has hit a number of industries across the United States, with retailers and restaurants among those hardest hit. Century 21, the parent company of Chuck E. Cheese and Neiman Marcus are among the companies that have filed for bankruptcy as a result of the pandemic. But in New York City, which became the epicenter of the virus in March, the environment has been especially challenged. Tourism has plummeted, government officials have been more cautious about reopening the economy and many wealthy residents have fled to the suburbs.
From March 16 to Sept. 27, 610 businesses filed for bankruptcy in the Southern and Eastern Districts of New York, the publication reported Tuesday. The two districts include some counties in the city's neighboring suburbs.
Owners of small businesses, which have struggled more during the pandemic, are less likely to file for bankruptcy. Instead, many are simply leaving the keys in the door. Yelp data shows that more than 4,000 New York City businesses have permanently closed since March.
Another flurry of bankruptcies and permanent closures is expected as cold weather arrives along with a forecast second wave of coronavirus cases. Local health officials issued a warning Monday as cases in New York rise and hospitalizations increase.