The rallying stock market may not care about it right now, but the economic devastation from the COVID-19 pandemic continues in full force.
Indeed this week highlights the ongoing pain ripping through Corporate America. Overly indebted vitamin seller GNC filed for bankruptcy on Wednesday, crushed by mall closures brought on by the pandemic. Chuck E. Cheese — also boasting a ton of debt following a 2014 leveraged buyout — filed for bankruptcy on Thursday as the prospect of catching COVID-19 by touching dirty games keeps parents and children away.
“I think what you’re seeing is what we’ll call the prolonged washout from COVID,” said Barclays chief U.S. economist Michael Gapen on Yahoo Finance’s The First Trade. Gapen says he is most concerned about the prospect for service-oriented companies in life after COVID-19, and doesn’t rule out more bankruptcies in the months and years ahead.
“We think that [those sectors] will