Bloomberg Law
Sept. 29, 2020, 11:00 AM

New York Region Sees 40% Bankruptcy Surge, Braces for More

Josh Saul
Josh Saul
Bloomberg News
Henry Goldman
Henry Goldman
Bloomberg News

The pandemic has battered New York City businesses, with almost 6,000 closures, a jump of about 40% in bankruptcy filings across the region and shuttered storefronts in the business districts of all five boroughs.

It’s going to get worse.

This fall, the nation’s largest city will see even more padlocked doors as companies burn through federal and private loans they tapped in March, landlords boot businesses that can’t make rent, and plummeting temperatures chill outdoor dining and shopping.

“By late fall, there will be an avalanche of bankruptcies,” said Al Togut, a lawyer who has handled insolvencies for small ...

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