Impact Of COVID-19 On Billionaires: A Look At Those Who Fell From Grace

Times are tough. People are working from home, going to school online, and not engaging in the activities they typically do. This shift is hurting the bottom line of a variety of businesses, from local eateries to major retail chains in nearly every mall across America. The repercussions of this pandemic have been far-reaching, resulting in 267 individuals being dropped from the exclusive 'three comma club' over the past year. Before COVID-19 even took hold, retail sales were already on a downward trend, leading to significant financial losses for companies like Gap, Forever 21, and Nordstrom. This downturn has pushed some owners back to a mere millionaire status, while management missteps at companies like WeWork and Juul have caused their leaders to fall from billionaire ranks.

The financial landscape has been altered dramatically, with many once-successful business moguls now facing daunting challenges. Adam Bowen and James Monsees, co-founders of Juul, once enjoyed a net worth of around $900 million each. However, the rise of health concerns surrounding vaping and regulatory scrutiny has sent their company's sales plummeting. Similarly, Robert and William Fisher, heirs to the Gap fortune, have watched their family's retail empire struggle amid declining sales.

Furthermore, Bruce Nordstrom and Anne Gittinger, grandchildren of Nordstrom's founder, have faced years of declining sales at their brick-and-mortar stores. In the beauty industry, Anastasia Soare, known for her eyebrow cosmetics, has seen her brand's sales expectations drop significantly, exacerbated by the pandemic's impact on daily makeup routines. Not to be overlooked, Martha Firestone Ford witnessed significant declines in Ford Motor Company's stock, falling over 45% as the pandemic halted both sales and production of new vehicles.

Table of Contents

• Juul Founders: Adam Bowen and James Monsees
• Gap Heirs: Robert and William Fisher
• Nordstrom Siblings: Bruce Nordstrom and Anne Gittinger
• Beauty Mogul: Anastasia Soare
• Ford Motors: Martha Firestone Ford
• Forever 21 Founders: Do Won and Jin Sook Chang
• Canada Goose: Dani Reiss
• WeWork Founder: Adam Neumann

Juul Founders: Adam Bowen and James Monsees

Adam Bowen and James Monsees co-founded Juul, which rapidly became the leading brand of e-cigarettes in the United States. Despite their initial success, the company has faced numerous challenges, including investigations by the U.S. Food and Drug Administration due to high nicotine levels in their products. These issues, combined with growing concerns over the health implications of vaping, have significantly impacted Juul's sales and reputation.

Financial Overview

Initially valued at around $15 billion, Juul's worth has drastically declined as regulatory scrutiny has intensified and public perception has shifted. The combination of these factors has led to a marked decrease in sales, pushing Bowen and Monsees into a precarious financial position.

Gap Heirs: Robert and William Fisher

Robert and William Fisher are the sons of Gap's founders, Doris and Don Fisher. Despite their family's storied legacy, the retail giant has seen its sales steadily decline over the years. The Fisher family remains influential in the company's operations, holding 43% of the firm's stock, which includes brands like Old Navy, Banana Republic, and Athleta.

Challenges Facing Gap

The decline in foot traffic to physical stores has had a deep impact on Gap's profitability. As consumers increasingly turn to online shopping, traditional retail models face significant challenges, leading to store closures and inventory issues.

Nordstrom Siblings: Bruce Nordstrom and Anne Gittinger

Bruce Nordstrom and Anne Gittinger are the grandchildren of the company's founder, John W. Nordstrom. Like many brick-and-mortar retailers, they have experienced a steady decline in sales, which has been exacerbated by the pandemic. As a result, the Nordstrom family is navigating a challenging retail environment.

Impact of Changing Shopping Habits

With the rise of e-commerce, traditional retail has struggled to maintain its market share. Nordstrom has had to adapt to these changes, focusing on a more agile online shopping experience while grappling with the realities of declining in-store sales.

Beauty Mogul: Anastasia Soare

Anastasia Soare is renowned for her expertise in eyebrow shaping and her successful cosmetics line, Anastasia Beverly Hills. However, like many in the beauty industry, her sales projections have been negatively impacted by the pandemic, as fewer people are purchasing makeup during lockdowns.

Sales Decline

It is estimated that her sales may drop by as much as 20% due to internal company issues and changing consumer behavior. The pandemic has fundamentally altered daily routines, leading many to prioritize skincare over makeup.

Ford Motors: Martha Firestone Ford

Martha Firestone Ford, widow of former Ford president William Clay Ford, has witnessed the challenges facing the automotive industry firsthand. The pandemic has severely affected Ford's operations, resulting in a significant drop in stock value.

Stock Performance

With shares plummeting over 45% in 2020, Ford's ability to sell and produce new vehicles has been hampered by shutdowns and reduced consumer demand. The company is now focused on rebuilding and adapting to a rapidly changing market.

Forever 21 Founders: Do Won and Jin Sook Chang

Do Won and Jin Sook Chang founded Forever 21, which quickly became a popular fast-fashion retailer. However, the company has faced numerous challenges, including filing for bankruptcy and selling its assets to mall operators.

Market Struggles

Once boasting a combined net worth of $5.9 billion, the Changs have seen their fortunes dwindle as retail struggles persist. The fast-fashion model has come under fire for its sustainability practices, leading to a declining customer base.

Canada Goose: Dani Reiss

Dani Reiss is the owner of Canada Goose, famous for its luxurious parkas. While the brand has enjoyed a strong reputation, it has also faced challenges during the pandemic, including slowing sales and high inventory levels.

Brand Reputation

Despite being worn by celebrities and featured in popular films, Canada Goose's sales have suffered as consumer behavior shifts. The brand must now navigate the balance between maintaining its luxury image and adapting to market demands.

WeWork Founder: Adam Neumann

Adam Neumann, the co-founder of WeWork, once saw his company valued at $47 billion. However, leadership concerns forced a halt to the company's 2019 IPO plans, leading to Neumann's eventual ousting.

WeWork's Challenges

The decline of WeWork has highlighted the vulnerabilities in the co-working industry, particularly as remote work becomes more common. Neumann's exit marks a significant turning point for the company as it seeks to regain stability.

Key Takeaways