U.S. corporate bankruptcies reached their highest level since the 2008 financial crisis as Americans tighten their belts. Companies have increasingly struggled with rising debts, driven by high interest rates that have caused borrowing costs to spike.
In 2024, 686 companies filed for bankruptcy, marking an 8 percent increase from 2023 and surpassing the total filings of 2021 and 2022 combined. This figure represents the highest number of filings since 2010, according to data from S&P Global Market Intelligence.
Additionally, last year, more companies attempted to avoid bankruptcy through out-of-court actions, with these efforts outnumbering actual bankruptcies two to one, as reported by Fitch Ratings.
One of the most significant bankruptcies of the year was Party City, which filed for Chapter 11 for the second time in just over a year. The company announced it would close all 700 of its stores, attributing this decision to inflationary pressures and a decrease in consumer spending—trends that are common among other struggling businesses.
Other major names, such as Tupperware, Red Lobster, and Spirit Airlines, also filed for bankruptcy in 2024. Even the popular vodka brand Stoli filed for bankruptcy in November. […]
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