US Recession, Dozens of Snapper Companies File for Bankruptcy

Jakarta, CNN Indonesia –

Recession United States economy (AS) made dozens of big companies broke. Jefferies Investment Bank estimates that the number of bankrupt companies rose 244 percent in July and August compared to the same period last year.

The number of companies that went bankrupt in September is estimated to increase in line with the increase in cases of companies filing bankruptcy suits.

For example, Brooks Brothers, Hertz, California Pizza Kitchen, and Chuck E. Several companies that went bankrupt and have filed for bankruptcy in the US summer.

Still according to Jefferies, the Lord & Taylor and Century 21 department stores, even closed completely. However, there are also companies that have the luck of finding buyers, such as 118-year-old JCPenney.

“There are a lot of companies that lose money even though we work 24 hours a day,” said Joseph Acosta, a partner at Dorsey & Whitney who focuses on bankruptcy issues, citing CNN Business, Sunday (13/9).

He continued that in recent months, bankruptcy filings by large companies had increased by 120 percent, including from pioneer Chesapeake Energy, high-end kitchen appliance company Sur La Table, and Cirque du Soeil.

From the business sector, according to Jefferies’ research, filing for bankruptcy airlines rose 110 percent, while the oil and gas industry rose 45 percent, as well as the entertainment industry which rose 22 percent.

“The number of bankruptcies has yet to reach a peak. The peak will come when the government stops the aid package,” said Acosta.

Previously, the US central bank, The Federal Reserve, had disbursed aid funds for the industrial sector in the US, including small and medium enterprises.

However, bankruptcies at small and medium enterprises do not appear to be soaring. It is suspected that there were fewer bankruptcy filings by small companies than large companies.

“It may also be because there is insufficient cash / liquidity difference to hire a bankruptcy attorney,” explained Ken Usdin, Jefferies banking analyst.

In other words, he continued, these small companies cannot even afford to cover their costs if they go bankrupt.

[Gambas:Video CNN]

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