Hard-hit by the coronavirus pandemic, StubHub may be in trouble of not surviving the crisis, analysts warn. In a breakdown of American companies potentially in jeopardy of sinking, 24/7 Wall Street’s Grant Suneson grouped the ticket resale giant in dangerous territory with other top brands.
Since COVID-19 ultimately halted the live events industry in mid-March, StubHub has furloughed two thirds of its workforce and faces significant revenue loss from thousands of postponed and cancelled events. The company has also boldly decided to ditch cash refunds in favor of issuing voucher credits for all impacted events. President Sukhinder Singh Cassidy revealed to Axios that “unprecedented times” have heightened “the risk of giving refunds to buyers before recouping the same refund from the seller.”
The decision resulted in lawsuits from consumers as much of the industry has faced backlash regarding refund practices. While competitor Ticketmaster has drawn the ire of consumers and lawmakers alike, company president Jared Smith noted the $600 million in refunds that have been processed and singled out StubHub for not issuing any cash refunds.
Guest commentator Eric Fuller recently echoed the same warning call while outlining the perils StubHub was facing as a result of the pandemic. Fuller noted that the company was “demanding to both be repaid for the cancelled events, and to keep holding the money for the future events,” which when coupled with its refusal to issue refunds, signals a dangerous outlook.
In addition to StubHub, 24/7 Wall Street listed companies across various industries that may end up folding due to coronavirus, including retailers like J Crew and Nordstrom, Gold’s Gym, Norwegian Cruise Line and restaurants Ruby Tuesday and Steak ‘n Shake.