At least three major companies have either filed for Chapter 11 bankruptcy protection or defaulted on loans during the week of December 21 – December 25, 2020. These filings and defaults caused credit issuers to lower ratings for one out of the three companies. The Consumer Discretionary sector saw the majority of defaults for the second week in a row.
Sources: S&P, CNBC, Press Release
Punch Bowl Social is an eat-and-entertainment restaurant chain, known for its arcade games and karaoke. The chain was considered the future of restaurant dining, and grew to 20 locations in only eight years. Moreover, in 2019 Cracker Barrel invested $140 million in a stake of the company. However, pandemic-related closures caused the restaurant chain’s profits to evaporate.