First Company to File for Bankruptcy Because of Corona

Coronavirus doesn't only take human lives, but also causes money losses in almost every vital sector in economy.

Amid fears of global economic repercussions with regard to the virus, Bloomberg reported on the first victim company which has just filed for bankruptcy.

Dean & Deluca Inc., the pioneering gourmet grocer that was already struggling to survive, filed for Chapter 11 protection from creditors as the coronavirus brought New York City shoppers to a virtual standstill.

The company listed liabilities of as much as $500 million and assets of no more than $50 million in a bankruptcy petition filed in Manhattan. Its owner, Thailand’s Pace Development Corp., defaulted on a total of 9.5 billion baht (about $315 million) of debt last year.

Dean & DeLuca’s New York stores introduced Americans to international delicacies more than four decades ago and spawned a cohort of upscale gourmets. But the chain faltered amid heightened competition and lackluster sales.

Earlier, G20 leaders said during a Thursday’s summit that they will inject more than $5 trillion into the global economy “as part of targeted fiscal policy, economic measures and to guarantee schemes to counteract the social, economic and financial impacts of the pandemic.”

During a video-conference of the world’s 20 largest economies, the leaders said they are committed to restoring confidence, maintaining financial stability and reviving growth, vowing to form a united front against the coronavirus pandemic. They added that facing the current health, social and economic repercussions is a “top priority”.

Analysts earlier speculated that coronavirus will cost businesses billions, while insurance may not help. On its part, the Organization for Economic Cooperation and Development laid out just how bad things could get: If the coronavirus continues to spread, it could cut the year’s global growth by half, to 1.5 percent for the year instead of the 2.9 percent that the Paris-based research group had forecast before the epidemic took off.