While Wall Street panic buys stocks again, on hopes Washington can pass the next round of much-needed economic stimulus, the broader commercial real estate market continues to implode and nowhere more so than the epicenter in New York City, where nearly 6,000 business closures, has resulted in a 40% eruption in bankruptcy filings across business districts of all five boroughs this year, reported Bloomberg.
Al Togut, a bankruptcy lawyer who has handled insolvencies for small firms to mega-corporations, said, “by late fall, there will be an avalanche of bankruptcies … When the cold weather comes, that’s when we’ll start to see a surge in bankruptcies in New York City.”
The coming wave of business closings, as explained in “Old Man Winter To Plunge Restaurants Into Further Chaos,” is set to crush eateries and other small businesses in NYC ahead of the holiday season.
“It’s a crisis, and we need to act—our economy can’t recover without saving small businesses,” said NYC Comptroller Scott Stringer, a candidate in next year’s mayoral election.
“When they close, we don’t just lose our beloved Main Street businesses. We lose jobs, tax revenue and the economic backbone of our city,” Stringer said.