2020 gives no hindsight for business closures

Tens of thousands of New York City businesses are crying out in pain over the Covid-19 lock down, according to an aptly named Yelp study.

New York City has more than 11,000 businesses shuttered as of September 1, 2020 with a vast majority of them permanently closed, Yelp showed in its latest economic forecast.

Hardest hit are bars and restaurants followed by women’s apparel where almost 60% of stores are closed for good. Beauty salons and gyms round out the worst shuttered sectors, according to Yelp.

Gotham’s draconian business environment is second only to Los Angeles in number of retail closures, while in the infection rate in the five boros hovers at less than 1%.

The number of permanent store closures across the US has almost tripled since the beginning of the Covid-19 lock down in early April with no clear end in sight.

This year 27 major US retailers have filed for bankruptcy including Century 21, Lord & Taylor and Brooks Brothers. While many may re-emerge after restructuring their debt, others will not come back.

In comparison last year 17 major US retailers filed for Chapter 11 with 9,500 store closures. This year’s store closing is on a pace to eclipse the 2019 figure.