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Share link:In this post: Year to Date U.S. bankruptcy filings rose to the highest in 14 years, excluding the 2020 pandemic. Since the beginning of the year, at least 512 companies have filed for bankruptcy, 6 filings short of the levels witnessed in 2020. 81 bankruptcies came from companies in the consumer discretionary sector, followed by industrials with 60 companies.
Bankruptcy filings from US-based companies have broken a 14-year record, excluding the pandemic levels, by recording more than 500 bankruptcies year-to-date. So far, the year is only 6 companies away from attaining the bankruptcy levels witnessed in 2020 during the COVID-19 pandemic.
The U.S. bankruptcies filed from January through September hit the highest level in the last 14 years. A total of 512 large companies have filed for bankruptcy since the year started. The number falls short of 6 companies to march the bankruptcy levels recorded during the COVID-19 pandemic.
August and September break a 4-year record with 59 and 63 bankruptcies
According to market commentary firm Kobeissi Letter, August and September alone recorded 59 and 63 bankruptcies, breaking the 4-year record.
Three notable September filings involved companies that owed more than $1 billion at the initial filing in the consumer discretionary sector. These companies included Big Lots Inc., Tupperware Brands Corp., and Wheel Pros LLC.
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Fourteen companies with headquarters in California made up over 20% of all filings in April. New York registered 8, followed by six companies from Texas and Florida. Arizona recorded three bankruptcies. Other states had filings from less than two companies in April.
A survey by S&P Global Market Intelligence revealed that June had the highest number of bankruptcies, with 72 filings. April followed June with 68 insolvency cases. May followed with 60 filings, and March trailed close behind, with 58 companies going under.
The consumer discretionary sector leads with the most bankruptcy filings
The consumer discretionary sector witnessed the most bankruptcy filings, with 81 companies going under. Industrials trailed behind with 60 bankruptcies, and healthcare came in third with 48 companies. US consumer spending slowed in August as retail sales remained flat from July.
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