Small Business Bankruptcies Are at Their Highest Since the 2008 Crisis

by
Sharing is Caring!

The American economy is sounding alarm bells as a dramatic surge in commercial bankruptcies paints a troubling picture for the future. In the first half of 2024, subchapter V elections within Chapter 11—specifically designed for small businesses—have skyrocketed by a staggering 61% compared to the same period last year. This surge is more than just a statistic; it’s a harbinger of distress that should send shockwaves through the business community and beyond.

Retail bankruptcies are particularly alarming, with 26 companies filing for bankruptcy year-to-date—almost matching the total number for all of 2023. This marks the third-highest level since 2011, when 30 retail firms declared bankruptcy during the same timeframe. The implications are dire, highlighting an industry in turmoil that could have far-reaching effects on employment and consumer choice.

See also  US lost 46,000 manufacturing jobs in October; bankruptcies hit 512 in 2024.

The situation is equally alarming on the individual front, with personal bankruptcies climbing by 15%. This dual crisis reflects the mounting economic pressures faced by both businesses and households, driven by a trifecta of factors: soaring consumer debt levels, elevated interest rates, and relentless increases in living costs. The ramifications of these trends are profound and far-reaching.

See also  In Australia, residents of a small town witnessed the formation of a dome, from which even, if you look closely, lightning bounces!

Sources:

themortgagepoint.com/2024/07/03/bankruptcy-breakdown-commercial-individual-bankruptcies-up-in-first-half-of-year/

projects.propublica.org/graphics/bankruptcy-data-analysis


Views: 198

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.