US bankruptcies are riding rapidly:
275 large companies have declared bankruptcy through May of this year, the 2nd highest since 2010.
Over the last 14 years, only 2023 saw a higher count of bankruptcy registrations, at 277.
In May 2024 alone, 62 firms have gone bankrupt, the… pic.twitter.com/ymNU6fYEcr
— The Kobeissi Letter (@KobeissiLetter) June 22, 2024
- Overall Bankruptcy Filings:
- Bankruptcy filings rose by 16% during the 12-month period ending March 31, 2024, compared to the previous year.
- However, it’s important to note that new bankruptcy cases remain significantly lower than before the start of the COVID-19 pandemic.
- Business vs. Non-Business Filings:
- Business filings increased by 40.4%, from 14,467 in March 2023 to 20,316 in March 2024.
- Non-business filings rose by 15.1%, from 388,806 in March 2023 to 447,458 in March 2024.
- Historical Context:
- The current 12-month filing total for the quarter ending March 31, 2024, is nearly three-fifths of the total reported in March 2020 when the pandemic disrupted the U.S. economy.
- In March 2020, the total was 764,282 filings.
- Notable Business Bankruptcies:
- Red Lobster’s recent bankruptcy filing is one example, reflecting the challenges faced by consumer discretionary companies.
- Other large firms have also sought bankruptcy protection, contributing to the trend.
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