U.S. could lose 25,000 businesses in 2020

U.S. could lose 25,000 businesses in 2020

  • Post published:June 11, 2020
  • Post category:News

According to independent research firm Coresight Research, the U.S. is facing the potential permanent closure of up to 25,000 business as the effects of coronavirus lock down and reduced spending take their toll. Weakened consumer spending at brick and mortar businesses, combined with fear of infection for those venturing out of the house to shop, wreaked havoc on the balance sheets for many businesses – with retail and entertainment taking an especially hard hit. 

With many shoppers shifting their habits to online retailers, department stores and those business operating in malls have seen some of the worst damage from the pandemic. JC Penny, J Cole, Pier 1 Imports, and Tuesday Morning are just a few of the big names to have already announced they will be closing permanently or filing for chapter 11 and seeking to restructure. Meanwhile in New Mexico unemployment numbers are going down slowly, but there is no data yet available to show how many of those jobs are never going to be coming back once the state is allowed to operate at normal capacity. The unemployment rate in New Mexico is 11.3% as of April, above the national rate of 14.7%. No data is currently available for the month of May  Read more HERE.