In an article by Good Morning America, it revealed that at least half-dozen name-brand U.S. restaurant chains are facing debt and may inevitably face bankruptcy amid COVID crisis, as projected by S&P Global Market Intelligence.
Denny’s Corp (company behind Denny’s) are seen to be most likely to default on loans. Meanwhile, Applebee’s and The Cheesecake Factory are in the shortlist of chains that may not be able to pay their debts.
According to the article, businesses that default on loans are often forced to file for bankruptcy protection, close locations, liquidate assets or some combination thereof. Read more: Cheesecake Factory, Denny’s among restaurant chains facing bankruptcy amid coronavirus, an article by Good Morning America.
“The odds that the largest publicly traded U.S. restaurants will default fell in recent months as states allowed businesses closed by the coronavirus pandemic to reopen. But the ongoing financial hits from the virus and uncertainty over whether laid-off consumers will receive expanded unemployment benefits continue to pressure the industry as more companies enter bankruptcy.” – S&P said in its new report.