COVID-19 has caused substantial damage to California businesses. In mid-March 2020, Governor Newsom ordered all non-essential businesses to close, including bars, beer pubs and wineries. San Francisco Bay area officials ordered some 7 million residents to “shelter in place” on Monday, prohibiting people from leaving their homes, except under “limited circumstances,” according to the order. Dawn Kopecki, Coronavirus: California estimates 25.5 million residents — 56% of the state — will get virus in next 8 weeks. CNBC, Mar. 19, 2020, at 1, https://www.cnbc.com/2020/03/19/coronavirus-california-estimates-25point5-million-residents-56percent-of-the-state-will-get-virus-in-next-8-weeks.html
On March 20, 2020, Sacramento implemented a mandatory stay-at-home order. As part of the order, residents are told to stay at home except for “essential activities, essential government functions, or to operate essential businesses.” The order mandates the closure of all bars, wineries, and brewpubs. It also orders an end to all in-dining at restaurants, but still allows for home delivery and takeout. All gyms, bingo halls, and card rooms will also be required to close. Matthew Nuttle, Here's what Sacramento County's coronavirus stay-at-home order applies to, ABC, March 19, 2020, at 1, https://www.abc10.com/article/news/health/coronavirus/sacramento-county-shelter-in-place-coronavirus-covid/103-d6218d97-f198-4247-8907-844146b00a8b
The mandatory business closures have continued for eight weeks. The restrictions are slowing being lifted and some businesses have been able to reopen, but we do not fully know the long term impact COVID-19 will have on businesses in Sacramento, California. Regardless, these initial closures have resulted in mass layoffs. "During a press conference Monday night, Newsom reported that the daily average of claims over the last seven days is 106,000. The normal average per day is just 2,500, meaning the number of jobless claims has increased by over 4,000%." Eric Ting, California's increase of unemployment insurance claims is absolutely staggering. SFGate, Mar. 24, 2020, at 1,. https://www.sfgate.com/politics/article/California-unemployment-coronavirus-numbers-news-15152303.php
. The unemployment claims have only continued since this issue began in mid-March 2020.
Its likely that a significant number of businesses will permanently close as a result of COVID-19. The question becomes how do business owners close their business? There are ultimately two options: dissolution and bankruptcy.