People wearing protective masks walk past an exit sign displayed outside Century 21 on the Upper West Side as the city resumes Phase 4 of reopening after restrictions were imposed in New York City on September 27, 2020 to slow the spread of the coronavirus.
Noam Galai | Getty Images
According to Bloomberg, bankruptcies in the New York City area rose 40% during the coronavirus pandemic, compared to the same time a year ago.
The crisis has hit a number of industries in the United States, with retailers and restaurants being hardest hit. Century 21, the parent company of Chuck E. Cheese and Neiman Marcus, is among the companies that have filed for bankruptcy as a result of the pandemic. The environment was particularly challenged in New York City, which became the epicenter of the virus in March. Tourism has declined, government officials have been more cautious about reopening the economy and many wealthy residents have fled to the suburbs.
From March 16 to September 27, 610 companies in the southern and eastern boroughs of New York filed for bankruptcy, the publication reported Tuesday. The two districts include some districts in the neighboring suburbs of the city.
Small business owners struggling more during the pandemic are less likely to file for bankruptcy. Instead, many simply leave the keys in the door. Yelp data shows that more than 4,000 New York City businesses have permanently closed since March.
Another spate of bankruptcies and permanent closings are expected as cold weather arrives along with a predicted second wave of coronavirus cases. Local health officials warned Monday as New York cases increased and hospital stays increased.
Read more about rising bankruptcies in New York here.