A lot of businesses suffered during the lockdown period of the covid pandemic. Some, like Starbucks and McDonald's, found deft ways to pivot their business model to serving people with drive-through and delivery.
Others saw sales fall or drop to zero due to forced closures. You can argue that the pandemic played a strong role in the bankruptcy filings of Tuesday Morning, Bed Bath & Beyond, and Christmas Tree Shops. All three of these retailers were built around brick-and-mortar stores selling mostly non-essential items.
During a time period when stores were either forced to be closed or they were open, but in a climate where few people were shopping for fun, all three of those now-closed retailers suffered. It's possible that all three brands had issues that would have led to their eventual insolvency anyway, but covid drained their bank accounts and sped up the timeline.
Two other major retailers — David's Bridal and Party City — filed Chapter 11, but managed to find a way to emerge from bankruptcy and return to operations. Both of those companies suffered from people not having parties or weddings during the darkest days of the pandemic.
Once vaccines were created, however, and life returned to normal, both Party City and David's Bridal were able to prove to investors that their brands were healthy. That's the argument Continental American Corp., which does business under the name Pioneer Balloon, hopes to make as it looks to survive its Chapter 11 filing and resume its normal operations.
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Pioneer Balloon files for Chapter 11 bankruptcy
While it varies based on which state, sometimes even which city, you lived in, covid led to many large gatherings being canceled. In some states, they were literally illegal, while in others, people were just being cautious.
From March 2020, when then-President Donald Trump declared a national emergency, through about a year later when the CDC said that fully-vaccinated people could safely hold indoor gatherings, most group celebrations were canceled. No proms, weddings, birthday parties, graduations, or other types of parties created a doomsday scenario for Pioneer Balloons.
The company, which literally makes balloons for celebratory occasions saw its business crater during the pandemic. It has struggled to get back on track since the world has returned to normal and the company shared what happened in a message to customers.
"The months since the COVID lockdowns have been difficult for us, and we have struggled to produce enough product to meet your needs. We have worked through many different strategies and plans and reached a point when we must focus our energy and resources on the future of Pioneer instead of struggling with the challenges of the past," the company posted on its website.
To make that happen, Pioneer has filed for Chapter 11 bankruptcy protection in order to reorganize its business.
Pioneer expects to continue
Unlike many companies that file for Chapter 11, Pioneer's assets of about $66 million exceed its liabilities of roughly $30 million, Kansas.com reported. The company does expect it will be able to work out deals with its creditors and land the funding needed to continue.
"We intend to continue operations in the ordinary course of business, and we anticipate fulfilling outstanding obligations and debt of the company as part of a successful Chapter 11 plan," the company shared.
Pioneer's affiliates in Australia, Brazil, Canada, Mexico, and the United Kingdom are not part of the Chapter 11 filing.
"We know this news may be surprising and worrisome to you, but please know we expect to continue manufacturing and providing you with Qualatex balloons as steadily as possible. Further, this process should help us accelerate the process of filling out the line with sizes and colors that are currently backordered," the company added.
Pioneer has about 900 employees worldwide and while it may not be a household name, the company's products are sold by Amazon, Walmart, and most major retailers around the world.
The company has not shared its financing plan to emerge from Chapter 11.
