U.S. corporate bankruptcies filed year-to-date exceeded annual totals in both 2021 and 2022, as companies continue to face high interest rates and a tight labor market.
As of Aug. 31, S&P Global Market Intelligence recorded 459 bankruptcy filings in 2023, more than all of 2021 and 2022 combined. The year-to-date numbers are also higher than all but two of the past 13 comparable totals. Year.
In August, 57 companies filed for bankruptcy protection. The total was lower than July’s 64 filings, but still significantly higher than most months in the past two calendar years.
Notable application documents
Proterra filed for bankruptcy on Aug. 7, saying in a statement that the filing will allow the company to maximize its value by separating each of its product lines. The company, which makes commercial electric vehicles and EV technology solutions, said it is facing “market and macroeconomic headwinds” that have impacted its ability to efficiently expand all product lines.
– Download the graph in Excel format.
– For retail-specific bankruptcy data, check out our monthly Retail Market series.
Another notable bankruptcy filing was filed by Yellow Corporation on August 6th. The trucking company, which employs 30,000 freight professionals, cited a long-running conflict with the International Teamsters union over management modernization plans as the main reason for its bankruptcy filing. .
In its statement, Yellow also disclosed a pending lawsuit against the union that was filed on June 26. Yellow cited more than $137 million in damages for breach of contract and loss of corporate value. The union responded on June 27, denying the allegations and saying it would “use all available legal resources to refute the baseless accusations made by Yellow.”
Sector breakdown
Healthcare recorded the highest number of bankruptcies in August, but continues to outpace consumer discretionary and industrial sectors in terms of bankruptcies filed so far in 2023.
In the first eight months of this year, the Consumer Affairs Agency recorded 57 bankruptcy filings, 54 in the industrial sector and 51 in the healthcare sector.
This breakdown by industry does not cover all corporate bankruptcies. By 2023, 200 companies that filed for bankruptcy were left without access to primary industries.
major states
Since 2010, the most bankruptcies filed in the United States have been in California, Texas, and New York, the three most populous states in the country. During the same period, California had 1,195 bankruptcies, followed by Texas with 973 and New York with 665.
More than 200 bankruptcies were recorded from 2010 to August 2023 in Florida, New Jersey, Illinois, Pennsylvania, Colorado, and Georgia.
This data dispatch will be updated regularly. The final version was published on August 3rd.
The number of bankrupt individuals includes private companies with assets or liabilities of at least $10 million, as well as public companies with assets or debts of at least $2 million at the time of filing or private companies with public debt. will appear. S&P Global Market Intelligence may remove a company from this list if it finds that the company’s total assets and liabilities do not meet the threshold requirements for inclusion.
