“The number of corporate bankruptcies in the US has reached its highest level since the global financial crisis, as higher interest rates and weakened consumer demand punish groups struggling to survive.”, — write: epravda.com.ua
The number of corporate bankruptcies in the US has reached its highest level since the global financial crisis, as higher interest rates and weakened consumer demand punish groups struggling to survive. The Financial Times writes about it. At least 686 U.S. companies filed for bankruptcy in 2024, up about 8% from 2023 and more than at any time since 2010, when 828 filed, according to S&P Global Market Intelligence . Out-of-court maneuvers to stave off bankruptcy also surged last year, roughly doubling the number of bankruptcies, according to Fitch Ratings.Advertisement: The collapse of party supply retailer Party City was typical of corporate bankruptcies in 2024. In late December, it filed for its second bankruptcy in as many years after exiting Chapter 11 bankruptcy in October 2023. Party City said it was closing 700 of its stores nationwide after struggling “in an extremely challenging environment caused by inflationary cost pressures and consumer spending, among other factors.” In 2021 and 2022 combined, there were just 777 bankruptcy filings, when the value of money was much lower because of the Fed’s rate-cutting program.Advertisement: That number jumped to 636 in 2023 and continued to rise last year, even as rates began to decline at the end of 2024 year. At least 30 of last year’s bankruptcy filings had at least $1 billion in liabilities at the time of filing, according to S&P.