New Delhi: US company bankruptcy filings touched 452 so far in 2024. rising by 63 filings in August compared to 49 bankruptcy filings in July 2024. To be sure, bankruptcy filings in August 2024 were down from 72 in June and 68 in April, according to data compiled by S&P Global Market Intelligence. Bankruptcy filings stood at 441 until August 2023 and 466 during the same period in 2020.
Why are US companies filing for bankruptcy?
US companies are filing for bankruptcy under pressure from elevated interest rates and uncertainty related to geopolitics. It remains to be seen how many bankruptcies will be filed in the remainder of the year 2024. In 2023, 193 companies filed for bankruptcy in the remaining 4 months, taking the total to the second highest since 2020 when US bankruptcy filings totalled 638, with 172 filings in the second half of 2020.
The US saw the third highest count of bankruptcy filings in 2023 since 2010 when the count touched 827. This was followed by 634 such filings in 2011.
How many billion-dollar firms went bust in US?
The US has witnessed 21 bankruptcies filed by billion-dollar companies in the US so far in 2024. The leading sector for bankruptcy filings has been consumer discretionary, followed by industrials and healthcare, SPGMI reported.
Key billion-dollar companies which went bust in August include:
SunPower
Avon International Operations
SQRL Service Stations
While SunPower is a solar technology provider, Avon is a distributor of cosmetics and perfumes and SQRL operates fuel pumps as well as convenience stores.
US bankruptcy filings reached their highest level in August 2024 for the first 8 months of a year since 2020. Bankruptcy also reached its second-highest level since 2010, according to S&P Global Market Intelligence. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
