The number of U.S. corporate bankruptcy filings rose again in December 2023, ending the year with the highest number of filings since 2010.
S&P Global Market Intelligence recorded 50 bankruptcy filings that month. This total was up from the 33 (revised) recorded in November, but was roughly in line with the monthly average of just under 54 bankruptcies in 2023.
A total of 642 applications were filed in 2023, significantly higher than the previous two years and slightly higher than 2020, which saw a flurry of applications related to the COVID-19 pandemic. Investors expect the Fed to cut interest rates as early as March, but businesses will still have to contend with relatively high interest rates and solid wage growth in the near term.
Notable application documents
Pennsylvania Real Estate Investment Trust filed for bankruptcy on Dec. 10 amid continued challenges in the commercial real estate sector. The real estate investment trust, whose portfolio consists primarily of shopping centers on the East Coast, said inflation and rising interest rates are having a negative impact. This has affected the company’s business status post-pandemic.
Bird Global, which makes electric scooters and bicycles, also filed for bankruptcy protection on Dec. 20 in an effort to return to profitability. The company operates in his 350 cities around the world. Operations in Canada and Europe were not affected by this filing.
Pennsylvania Real Estate Investment Trust was the only company with more than $1 billion in debt to file for bankruptcy in December, bringing the total number of bankruptcy filings in 2023 to 22. One of those large filings, Diamond Sports Group LLC, continues to file for bankruptcy. The case was filed in court while the company sought to renegotiate its broadcasting contract and avoid liquidation.
Sector breakdown
Seven industrial companies and seven consumer goods companies filed for bankruptcy during the month, followed by six information technology companies and six in the healthcare sector. Consumer discretionary companies recorded the most bankruptcies in 2023, with 82 filings.
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– For retail-specific bankruptcy data, check out our monthly Retail Market series.
Consumer goods, industrial, and healthcare companies file far more bankruptcies than all other sectors on an annual basis.
major states
Bankruptcy filings occurred in 19 states and the District of Columbia in December, with the highest numbers in California, Texas, and Florida.
During the year, 95 California companies filed for bankruptcy protection, followed by 75 companies in Texas and 68 companies in Florida. New York added 58 applications in 2023, and New Jersey registered 31.
Additional states that filed 15 or more applications in 2023 included Massachusetts, Georgia, Nevada, Illinois, North Carolina, and Pennsylvania.
This data dispatch will be updated regularly. The final version was published on his December 8, 2023.
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.
