Business Turmoil, COVID 19 and Bankruptcy

Posted by Wesley Scott on November 25, 2020 at 5:39 PM
Wesley Scott

If you are a business owner COVID 19 presents challenges regardless of which kind of business you own. But for some businesses, COVID 19 is altogether disastrous. Take the restaurant industry as one example. In Minnesota, restaurants were closed for a certain period of time. While the PPP loan stimulus kept many afloat short term, those funds are now long gone. The trouble is the business has not come back though and the funds are gone. Sure restaurants in Minnesota are allowed to be open under strict guidelines, but when you have a wary public of any kind public gatherings, the number of people actually go to restaurants to eat in side is far less.

 If you’re a take-out pizza business, you probably have flourished in the pandemic. But if you are a restaurant who relied on in-door dining and maybe you set up a temporary space outside for dining, the fall weather has brought this option to an end. Now we go back to strictly indoor dining and if you have even 20% fewer business then before the pandemic, which seems optimistic, how do you make ends meet with 20% less business when you were barely making it before the pandemic hit? And then the experts say we have nearly another year of this?

Sad to say, but most restaurants will not survive another 6 months much less another year of weak sales. And this is just the restaurant industry; what about any other industry that relies on indoor public sales like malls, side-walk stores, theatres, concert venues, sporting events? Think of all the venders who are associated with these businesses whose income just got cut off. Empty sport’s stadiums do not need workers, hot dogs, trinkets for sale, or any other food or beverage.

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When the time is right, or when you have had enough and it is time to get your life back, reach out to Minnesota’s bankruptcy law firm at www.kainscott.com. You will be glad you did.

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