U.S. corporate bankruptcies rise to highest level since financial crisis, with 686 filings in 2024
ChainCatcher reported that according to Jinshen, data from S&P Global Market Intelligence shows that the number of US corporate bankruptcy filings reached 686 in 2024, up 8% year-on-year, setting a new high since 2010 (828). Among them, at least 30 companies filed for bankruptcy with liabilities exceeding $10 billion, including well-known companies such as Party City, Bed Bath & Beyond, and Red Lobster. Specific data shows that US corporate bankruptcy filings were only 777 in 2021-2022, but surged to 636 in 2023. Fitch Ratings data shows that the ratio of out-of-court restructuring to bankruptcy was about 2:1 in 2024, and the recovery rate of senior loans for issuers with total debt exceeding $100 million fell to the lowest level since 2016. Gregory Daco, Chief Economist at Ernst & Young, pointed out that the continued rise in the cost of goods and services has suppressed consumer demand, and consumers across income groups have become more cautious. Although the Federal Reserve has begun to cut interest rates, it only plans an additional 50 basis point cut by 2025. Experts at Academy Securities believe that the current corporate bankruptcy poses limited systemic risk to the overall economy and banking system, but the debt situation of companies under high interest rates needs to be closely monitored.
