The coronavirus pandemic has taken a huge toll on the U.S. economy. And the sad reality is that many businesses have been forced to close or are struggling to survive.
Filing for bankruptcy is usually the first public sign that a store or retail chain might be going out of business soon — but not always.
Take These Steps If Your Favorite Store Is Going Out of Business
Toys R Us and Sears are just two examples of major retail chains that have gone through bankruptcy proceedings and re-emerged as smaller companies.
But Clark says the conditions caused by the pandemic are making it more difficult for weak companies to survive. "This time, it's much more likely that these stores that have filed for bankruptcy are going to close forever," he says.
Here are some steps you need to follow if your favorite store files for bankruptcy.
1. Find Out the Rules on Your Store Credit Card
Also, if the store is in really bad shape it may begin to accept only online purchases. Because every company's circumstances are different, it's best to check with the store for specific information.
2. Use Your Gift Cards Immediately
3. Get Deals Before Liquidation Begins
When people hear that a business is in trouble, they often wait for the going-out-of-business sale to try to grab some deals. Clark says if you wait until then, you’re probably already too late.
<span style="font-weight: 400;">"When they do fail and they have their going-out-of-business sales, it's not the same business anymore. I don't ever go to going-out-of-business sales because the sales are usually handled by specialty liquidator companies, and the merchandise mix will change over the weeks of the liquidation sale."</span>
Clark says another deception is that many of the things you find in a liquidation sale will be items that the store never even sold!
Final Thought
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[ This article was originally published on Clark.com ]
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