Record corporate bankruptcies in the US

The number of corporate bankruptcies in the US rose sharply in 2024, reaching a 14-year high, as businesses grappled with high interest rates, tighter credit conditions and slowing consumption, according to S&P Global.

S&P Global data, cited by visualcapitalist.com, shows that 694 US companies filed for bankruptcy protection in 2024, making it the most active year since 2010, when businesses were hit by the aftermath of the 2008 financial crisis.

Corporate bankruptcies in the US reached record levels during the 2008 financial crisis, the cited source recalls, noting that more than 4,000 companies filed for bankruptcy annually in 2007, 2008 and 2009 (the figure includes both liquidations and debt restructurings). Since then, the number of bankruptcies has fallen sharply and stabilized in the 2010s, after which it increased again during the 2020 pandemic.

According to S&P Global, the number of corporate bankruptcies was 828 in 2010; 634 in 2011; 586 in 2012; 558 in 2013; 471 in 2014; 524 in 2015; 576 in 2016; 520 in 2017; 518 in 2018; 589 in 2019, 638 in 2020; 405 in 2021; 372 in 2022; 635 in 2023. According to these figures, after reaching a nine-year high of 638 in 2020, corporate bankruptcies in the US have declined significantly during the economic recovery in 2021 and 2022, with stimulus measures and low interest rates helping companies. However, higher inflation, interest rate hikes and a general economic slowdown led to a sharp increase in bankruptcies in 2023. The trend continued in 2024, with 694 bankruptcies exceeding the pandemic figures and representing the highest level since 2010.

However, not all companies that filed for bankruptcy want to close. According to S&P Global, more than 60% of legal entities that filed for bankruptcy in 2024 sought to restructure their debts and continue their operations.

• Sectors with the most bankruptcies in 2024

The consumer discretionary sector, which includes companies that provide non-essential goods and services, recorded the most bankruptcies in 2024 (109 filings), being affected by reduced consumer spending. The industrials and healthcare sectors followed, with 90 and 65 bankruptcies, respectively. According to S&P Global, the consumer staples and industrials sectors together accounted for 28% of all filings for bankruptcy protection.

Notably, the consumer discretionary sector was also the worst-performing sector in the S&P 500 in the first quarter of 2025, returning -14% through March 31.

The utilities sector had the fewest bankruptcies in 2024 (3), followed by energy (16) and materials (17).

The largest bankruptcies in 2024 included China Construction America, Party City Holdco, H-Food Holdings and Spirit Airlines, according to the source cited.

• Tensions Continue in 2025

According to the latest S&P Global data, 188 U.S. companies filed for bankruptcy in the first quarter of 2025, marking the highest level since the same period in 2010.

Among the largest bankruptcies this year so far are F21 OpCo, which owns the fashion brand Forever 21, and electric vehicle maker Nikola Corp.

As borrowing costs remain high and corporate spreads widen, business solvency is a key area to watch in 2025, amid looming recession risks, the cited source concludes.