The daily business briefing: May 4, 2020

1. J. Crew files for bankruptcy protection

J. Crew on Monday became the first major retailer to file for bankruptcy protection during the coronavirus crisis. The clothing chain said its parent company, Chinos Holdings, had submitted the paperwork for Chapter 11 protection in a federal bankruptcy court in Virginia. The company reached a debt-swap deal with creditors to convert $1.65 billion of its debt into equity. J. Crew said online sales would continue as normal during the bankruptcy proceedings, and that it would reopen its J. Crew and Madewell stores after local lockdowns are lifted. The company plans to put a possible spinoff of the Madewell brand into a public company. The pandemic has hit retailers hard as shoppers have been forced to stay home. Clothing and accessory sales fell by more than half in March. Other major retailers, including Neiman Marcus and J.C. Penney, are struggling during the pandemic.

The New York Times

2. Hotel industry rolls out safety guidelines for reopening during pandemic

The American Hotel & Lodging Association on Monday unveiled its guidelines for reopening inns to travelers during the coronavirus pandemic. The industry group is rolling out the SafeStay guidelines in conjunction with efforts by Hilton, Marriott, Best Western, and other major brands to standardize policies on cleaning and social distancing. The policies include offering hand-washing or sanitizer dispensers at entrances, frequent cleaning of elevators and front desks, housekeeping visits only on request, physical distancing, and contactless check-in whenever possible. "It's really an effort to make sure that no matter if you're staying at an extended-stay economy hotel or you're staying at the nicest luxury resort, that there will be at a minimum common standards across the entire industry," Chip Rogers, AHLA president and CEO, told USA TODAY.

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USA Today

3. Senators to debate protecting businesses from virus lawsuits

The Republican-led Senate reconvenes on Monday, while the Democratic-led House remains in recess due to the coronavirus pandemic. President Trump welcomed the decision by Senate Majority Leader Mitch McConnell (R-Ky.) to recall the Senate to Washington even though the congressional physician's office warned that it would be impossible to screen all senators for COVID-19. Republican senators said they would push for legislation to protect reopened businesses from liability lawsuits filed by people who might become infected. Democratic leaders have vowed to oppose blanket protections from lawsuits. The potential clash would mark a departure from the bipartisan approval of nearly $3 trillion in emergency bailouts for businesses and families struggling with the economic fallout from the pandemic.

The Washington Post The Guardian

4. Stock futures fall as state economies reopen

U.S. stock index futures fell early Monday amid fears of a surge in coronavirus cases as states across America ease stay-at-home orders and reopen their economies. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were fluctuating, down by about 1 percent several hours before the opening bell. More than two dozen states are letting at least some nonessential businesses reopen in May even though the U.S. had its deadliest 24 hours of the pandemic between Thursday and Friday. "The next two to four weeks are critical for both the economic crisis and the health crisis," said Marc Chaikin, CEO of Chaikin Analytics. "The biggest risk to the stock market is a premature reopening of the U.S. economy."

CNBC MarketWatch

5. Costco resumes normal hours but requires customers to wear masks

Costco is resuming its regular operating hours on Monday in a push to return to normal operations, although the discount warehouse chain will require all customers and employees to wear face coverings to help reduce the risk of coronavirus infection. The mask rule does not apply to children under age 2, or to anyone who can't wear a mask due to a medical condition. The company also is limiting traffic to two customers per membership, and encouraging shoppers to continue to avoid coming into close contact with each other. "The use of a mask or face covering should not be seen as a substitute for social distancing," the company said in a statement. Some customers objected to the mask rule on social media.

USA Today