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July U.S. Corporate Bankruptcy Filings Hit Highest Monthly Total In 5 Years

Airyaman said:
The meaning is that more companies have gone bankrupt by this time of the year than any year in the last 15.
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From the chart, more companies went bankrupt in 2024 than any since 2010. Trump is working to turn around that trend though those relying on government subsidy (green) will likely belly up.
 
It's best to go through the bankrupt companies one by one and learn its unique story. A number of them are healthcare companies that over expanded during Biden's/Obama era of quasi-socialized medicine. Rite aid was killed off by BLM shoplifters. Delmonte was killed by an over dependence on illegal labor and a general distaste for canned goods. JOANN was killed off because the public was brainwashed by progressives and no longer valued traditional endeavors like arts and crafts and making your own stuff.
 
Eriech said:
From the chart, more companies went bankrupt in 2024 than any since 2010. Trump is working to turn around that trend though those relying on government subsidy (green) will likely belly up.
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Oh yeah, what's he doing to turn the trend around? Tariffs are going to accelerate the bankruptcies, not slow them.
 
Airyaman said:
The meaning is that more companies have gone bankrupt by this time of the year than any year in the last 15.
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A raw number absent context doesn’t mean anything. A lot has happened over the last five years that can explain it. Were these businesses that had been hanging on by their fingernails since the pandemic? Were they part of the sub economy that sprang up to cater to pandemic conditions? Ex. Were they catering to a corporate work from home culture that all but disappeared last year?
 
Bankruptcies don't occur at record rates in a booming economy. All the rationalization in the world won't change this.
 
I'll let you dig into that. Share your findings with us, if you don't mind.
 
Eriech said:
From the chart, more companies went bankrupt in 2024 than any since 2010. Trump is working to turn around that trend though those relying on government subsidy (green) will likely belly up.
Click to expand...
The first seven months already surpass large bankruptcies going back 15 years. The chart doesn't give the 2025 total. It doesn't show a turnaround.
 
SCrider said:
The meaning is bankruptcies are up. That isa. bad sign that the economy is starting to fail.
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Is it? Or is it just a reflection of the fact that companies which sprang up to cater to pandemic conditions that no longer exist are finally going out of business as expected?
 
Eriech said:
From the chart, more companies went bankrupt in 2024 than any since 2010. Trump is working to turn around that trend though those relying on government subsidy (green) will likely belly up.
Click to expand...
Massive taxes (tariffs) and total uncertainty on future policy (the fact that Trump changes tariff policy on a day to day basis), is the worst thing you can do for business investment.
 
Napoleon said:
Is it? Or is it just a reflection of the fact that companies which sprang up to cater to pandemic conditions that no longer exist are finally going out of business as expected?
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What businesses would these be? Mask producers? Hand sanitizer makers?

These are manufactured by large corporations. Nobody is now going bankrupt because covid ended five years ago. That makes no sense at all.

Accept reality. It's much easier.
 
Napoleon said:
Is it? Or is it just a reflection of the fact that companies which sprang up to cater to pandemic conditions that no longer exist are finally going out of business as expected?
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Sounds like a desperate reach.
 
Napoleon said:
Not enough information to ascribe any meaning to this.
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Their debt is driving these companies into bankruptcy due to interest rastes.

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Dive Insight:​

Finance leaders of the companies tracked by S&P have been increasingly turning to the courts for bankruptcy protection since 2022 when interest rates began to rise as the Federal Reserve sought to combat inflation. They’ve risen from 373 in 2022 to 634 in 2023, touching 688 last year.

So far this year, the distress has been concentrated in industrial and so-called consumer discretionary companies which accounted for a combined 107 bankruptcies, followed by healthcare firms (27) and corporations in the consumer staples sector (19).

Among the largest firms to file bankruptcy petitions so far this year were craft retailer Joann, which listed debt of about $2.4 billion and assets of approximately $2.2 billion, and semiconductor manufacturer Wolfspeed, reporting approximately $6.7 billion in total funded debt as of its Chapter 11 filing on June 30. Just one week after the filing, Wolfspeed appointed industry alum Gregor van Issum to take the finance reins, CFO Dive previously reported.

US corporate bankruptcies hit 15-year H1 high: S&P

The petition volume this year through June is on pace to make 2025 one of the busiest years for bankruptcy filings in over a decade, according to an S&P Global report.
www.cfodive.com
 
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