Tuesday, August 4, 2020

Executives at JCPenney and Hertz scored bonuses before declaring bankruptcy, tales of the Retail Apocalypse and pandemic

In an aside near the end of Lord & Taylor and Tailored Brands, parent of Men's Wearhouse and Jos. A. Bank, file for bankruptcy, tales of the Retail Apocalypse and pandemic, I noted an omission and promised to correct it.
I've been skipping over the Hertz bankruptcy. I've been confining my covering of travel to driving updates, but maybe it's time to look at air travel, hotels, and car rentals.
I'm following up on that promise even earlier than I expected, as I came across U.S. execs score bonuses just before bankruptcy by Reuters, in which both Hertz and JCPenney play starring roles.

As companies such as J.C. Penney prepared to file for bankruptcy during the coronavirus pandemic, their executives scored millions in bonuses sometimes weeks or even days before filing their cases. That's according to a Reuters analysis of securities filings and court records.
This report reminds me of the shady dealings in CNN Business explains retail bankruptcies and how private equity is gutting retail, tales of the Retail Apocalypse and of the disconnect between Wall Street and Main Street in The Economist explains why the stock market is rallying during the pandemic. They may be legal, but they certainly don't seem ethical. They also contribute to the image of businessmen as self-interested while leaving their employees out in the cold.

A bankruptcy expert interviewed by KARE11 also makes the point that employees are the big losers of retail bankruptcies in What does corporate bankruptcy really mean for consumers?

Men's Wearhouse and Lord & Taylor are the latest retailers to file for bankruptcy protection during the pandemic, but what does that term really mean for the consumer? We sat down with a bankruptcy expert to find out.
Not only will the country face an eviction crisis, but also a wave of business and personal bankruptcies. Welcome to the coronavirus recession.

Stay tuned as I plan on making good on the other promise I made at the conclusion of yesterday's post.
Before I go, ABC News also reported that Ascena Retail Group, parent company of Ann Taylor, LOFT, Lane Bryant, Lou & Grey, Catherines, Cacique, Justice, and Dressbarn filed for bankruptcy recently. I'll have to report on that as well.

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