Of the 10 big businesses that failed in 2020, nine still exist in 2026 under restructured finances or new owners, and only Papyrus is gone. Bankruptcy filings gave these companies a chance to renegotiate debt, and most were bought, restructured or merged. This list covers what happened in 2020 and where each company stands now.
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What happened next to the 10
| # | Company | Filed in 2020 | Where it is now |
|---|---|---|---|
| 1 | Papyrus | January | Closed |
| 2 | JCPenney | May | Owned by Catalyst Brands since 2025 |
| 3 | Hertz | May | Out of Chapter 11 since July 2021 |
| 4 | Gold’s Gym | May | Owned by RSG Group |
| 5 | GNC | June | Owned by Harbin Pharmaceutical Group |
| 6 | CEC Entertainment | June | Chuck E. Cheese still operating |
| 7 | Brooks Brothers | July | Owned by Catalyst Brands |
| 8 | ALDO | May | Operating |
| 9 | Diamond Offshore | April | Acquired by Noble in 2024 |
| 10 | LATAM | May | Emerged in 2022 |
Why did these businesses fail?
Most were already weak. Papyrus, JCPenney, GNC and ALDO were shrinking before the pandemic as shoppers moved online. The pandemic then removed their cash flow. Oil companies had a separate shock: in April 2020 oil prices briefly fell below zero. Chapter 11 is a restructuring tool, not a death sentence, which is why most names on this list survived.
1. Papyrus
The upmarket greeting card retailer was a mall staple. Its parent, Schurman Retail Group, was carrying about $54 million in liabilities against about $39 million in assets when it filed in January 2020, before the pandemic hit. By January 2020 all 260 remaining Papyrus and sister stores were closed and liquidation sales began; some of the closed locations were later picked up by Paper Source. Gone as a mall chain. The cause was failing to keep up with how people send cards and keep calendars.
2. JCPenney
The department store with a history reaching back to 1902 filed for Chapter 11 on May 15, 2020, after a decade without a profit and a failed attempt to look trendier. Property owners Brookfield and Simon bought the business for about $800 million in cash and debt. Since 2025 it has been owned by Catalyst Brands, a joint venture of Authentic Brands Group, Brookfield, Shein and Simon. Still operating.
3. Hertz
The car rental giant filed on May 22, 2020, when pandemic travel collapsed and used-car prices fell. Its model depended on selling retired cars to repay lenders, so the double hit was severe. As of July 1, 2021, it was out of Chapter 11, and it reported 2021 revenue of $7.3 billion. Today, operating and trading.
4. Gold’s Gym
The famous bodybuilding brand closed 30 company-owned gyms in April 2020 and filed for Chapter 11 in May 2020. German fitness company RSG Group bought Gold’s Gym International for about $100 million. The brand listed 660 locations as of 2021. Today, operating under RSG. Yogaworks and Flywheel did not survive. Related: 5 Essential Gym Accessories for Your Gym Workouts.
5. GNC
The nutrition retailer had been shrinking, with plans to close up to 900 stores announced in 2018, and filed for Chapter 11 in June 2020, with at least 800 stores closed. Harbin Pharmaceutical Group bought it in a sale completed in October 2020; the original article reported a price of $770 million. Today, operating as a subsidiary of Harbin.
6. CEC Entertainment
The parent of Chuck E. Cheese filed on June 25, 2020, after closures cut off its business, and used the filing to secure about $200 million in financing to restructure. The chain was acquired by Apollo in 2014 for about $950 million. Today, chuck E. Cheese restaurants continue to operate. We could not re-verify current store counts.
https://www.youtube.com/watch?v=WWxsIftnvEM
7. Brooks Brothers
America’s oldest apparel brand in continuous operation filed on July 8, 2020, planning to close 51 of its 250 North American locations. In September 2020 it was bought by a joint venture of Authentic Brands Group and Simon Property Group. As of 2025 it is owned by Catalyst Brands, along with JCPenney. Today, operating.
8. ALDO
The Canadian shoe retailer restructured under Canada’s Companies’ Creditors Arrangement Act in May 2020 and furloughed 6,680 store associates. The UK arm went into administration and was bought, and Ireland closed. Still operating, with international stores franchised.
9. Diamond Offshore
The Houston driller filed in April 2020, hit by the oil price collapse, and was criticized for turning pandemic aid meant for small businesses into executive bonuses. In June 2024 Noble Corporation announced it would buy Diamond Offshore for $1.6 billion, completing the deal in September 2024. Today, part of Noble.
10. LATAM Airlines
Latin America’s largest airline filed for Chapter 11 on May 26, 2020, after cutting operations by about 95%. It emerged from bankruptcy in 2022, and its stock relisted on the New York Stock Exchange on July 24, 2024. Today, operating. Other 2020 airline casualties, like Miami Air International and Air Italy, did not come back.
https://www.youtube.com/watch?v=VKTFBa22vvo
Which other companies do you think we should have included? Tell us in the comments.
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FAQ
Which businesses failed in 2020?
Notable 2020 bankruptcies included Papyrus, JCPenney, Hertz, Gold’s Gym, GNC, CEC Entertainment, Brooks Brothers, ALDO, Diamond Offshore and LATAM.
Did JCPenney survive bankruptcy?
Yes. It was bought by Brookfield and Simon in 2020 and has been owned by Catalyst Brands since 2025.
Is Hertz still in business?
Yes. Hertz exited Chapter 11 on July 1, 2021, and was still operating in 2026.
Which of the 10 companies no longer exists?
Papyrus. Its stores closed in early 2020 after the parent company filed for bankruptcy.
Does bankruptcy mean a company shuts down?
No. Chapter 11 lets a company restructure its debt while it keeps operating, and many companies on this list did.
How we put this list together
We kept the original ten companies and checked each one’s ownership and status using public company and reference information. Details we could not re-check are marked as such.
Last updated: October 2026.
