- US bankruptcies are on track to hit a 10-year high as the coronavirus pandemic recession continues to slam businesses, according to a Monday report from S&P Global.
- This year, 424 companies have gone bankrupt through August 9, surpassing the number of filings during any period since 2010, according to the report.
- Consumer-focused companies such as retail have been hit particularly hard – 100 companies in the sector have filed for bankruptcy this year, S&P Global reported.
- Read more on Business Insider.
US bankruptcies are on track to hit their worst level in a decade as the coronavirus pandemic-induced recession continues to slam businesses, according to a Monday report from S&P Global.
This year through August 9, as many as 424 companies have declared bankruptcy, according to S&P Global. That surpassed the number of filings during any period since 2010, according to the report. S&P Global’s analysis covered public companies and private companies with public debt.
Consumer-focused companies have been hit particularly hard by the pandemic and sweeping shutdowns to contain the spread of the virus. Over 100 of these companies have filed for bankruptcy this year, according to S&P Global. This list includes popular brands such as J.Crew, JCPenney, Lord & Taylor, and Neiman Marcus Group.
Beyond retail and consumer-facing companies, other industries were also hit by the pandemic. The industrial and energy sectors together accounted for nearly 100 bankruptcies, according to S&P Global. Bankruptcy filings from the industries included Hertz Global Holdings and Ultra Petroleum Corp.
Of the companies that have filed for Chapter 11 bankruptcy protection this year, 35 of them reported more than $US1 billion in liabilities, according to the report.
As the pandemic-induced recession continues, and the US grapples with high coronavirus cases that threaten to derail the economic recovery, it’s expected that more companies will file for bankruptcy, according to the report.
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