We are Fortunare

21 July 2020
  • Dr. Mohan Dewan

Yes we are fortunate, if the entity which we work for is operating when the economies are crumpling, when demand is sluggish, when stores are closing, when companies are filing for bankruptcy, when sales are not happening or when employees are being laid off or fired.
According to a report published by Fortune, James Hammond the CEO of New Generation Research, which runs Bankruptcy Data has said “I’m pretty confident we will see more bankruptcies than in any businessperson’s lifetime.”
If we are still getting our salaries, if we are able to manage our EMI’s, we are able to make ends meet, we are really fortunate. Before discussing further, we have listed below information about some entities that have been troubled:

1. Victoria's Secret has filed for bankruptcy and so has Cath Kidston, Laura Ashley, J.C. Penney and Neiman Marcus

2. Gold's Gym has filed for bankruptcy

3. 24 Hour Fitness has filed for bankruptcy and is permanently closing more than 100 of its 400 gyms

4. High end retailer Brooks Brothers has filed for bankruptcy and is closing 51 of its approximately 250 stores

5. Exide Technologies, has filed for bankruptcy and agreed to sell its businesses in Europe and Asia

6. WeWork is enroute to bankruptcy

7. Zara has closed 1,200 stores worldwide

8. Chinese Ladies brand La Chapelle has closed 2470 stores

9. Starbucks is permanently closing 400 stores

10. Hermes is closing production sites in France

11. H& M is closing 170 Stores

12. Rolex has shut all plants

13. Chanel has discontinued operations

14. Patek Philippe discontinued production

15. Nike is planning layoffs

16. The founder of AirBnb said that because of the pandemic, 12 years of effort was destroyed in 6 weeks

17. Aldo has fallen into administration

18. Technicolor, has filed for restructuring

19. Harley-Davidson is laying off 700 employees

20. GAP records nearly $1 billion losses and is closing down 230 stores

21. Mercedes-Benz reported a 55 per cent decline in sales in India in the first half of the year 2020

22. Warren Buffett’s Berkshire Hathaway has lost $50 billion last quarter

23. HSBC considering restructuring which is likely to result in a lay-off 35,000 employees

24. Mondelez has stopped making one out of every 4 products

25. As sales figures fall, Burberry is likely to cut 500 jobs.

26. J.C Penny has filed for bankruptcy, planning to shut down 152 stores and cut down 1000 jobs.

And the list continues …. It seems as if the year 2020 is crushing everything that’s coming in its way, sparing nothing. All we need to focus at the moment is survival. We are reminded of Charles Darwin’s theory of survival of the fittest which says that in an adversity, the fittest will survive and evolve. When the going gets tough, the tough get going.
In a storm, the largest trees, whose trunks are un-bending fall, the smaller ones, bend at their stem and bounce back when the storm is over, in fact taking nourishment from the storm. So, be agile, don’t resist change.
Wait for the second part, every grey cloud (in this case black) has silver lining !


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