Corporate Bankruptcies
A rising trend in 2025, reaching the highest levels since 2010. The podcast explores the causes, attributing them to the end of the zero-interest-rate policy and the need for market correction.
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8/31/2025, 4:31:54 AM
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Summary
Corporate bankruptcies have surged to levels not seen since 2010, marking a critical inflection point in the economic cycle. This increase is primarily driven by the conclusion of the Zero Interest Rate Policy (ZIRP) era, significant commercial real estate debt, tightening financial conditions, stubborn inflation, and post-pandemic market realignments. While painful, this trend is often viewed as a natural and necessary process of creative destruction, fostering adaptation to new business models and economic landscapes. The rise is observed across various sectors, with industrial and consumer discretionary companies showing particular vulnerability, and includes a notable increase in large and mega-bankruptcies.
Referenced in 1 Document
Research Data
Extracted Attributes
Current Trend
Highest level of corporate bankruptcies since 2010
Nature of Trend
Healthy, albeit painful, process of creative destruction
Primary Cause - Debt
Massive commercial real estate debt wall
Bankruptcy Filings (2023)
635 U.S. companies
Bankruptcy Filings (2024)
694 U.S. companies (highest annual figure since 2010)
Primary Cause - Inflation
Stubborn inflation
Mega-Bankruptcies (H1 2024)
16 filings by companies with over $1 billion in assets (busiest half-year since 2020)
Bankruptcy Filings (H1 2025)
371 filings (highest total for the first half of the year since 2010)
Dominant Sectors (June 2025)
Industrial and Consumer Discretionary (combined 107 filings)
Large Bankruptcies (Mid-2024)
113 filings by companies with over $100 million in assets (8% increase YoY, 43% higher than pre-2020 averages)
Primary Cause - Market Dynamics
Post-pandemic market realignment
Primary Cause - Monetary Policy
End of Zero Interest Rate Policy (ZIRP) era
Primary Cause - Financial Conditions
Tightening financial conditions
Minimum Threshold for S&P Global Data
Public debt and assets/liabilities of at least $2 million, or private companies with assets/liabilities of at least $10 million
Timeline
- Enron files for bankruptcy, becoming one of the largest accounting scandals and bankruptcies in history, leading to the Sarbanes-Oxley Act. (Source: web_search_results)
2001-12-02
- Worldcom Inc. files for bankruptcy. (Source: web_search_results)
2002-07-02
- Conseco files for bankruptcy. (Source: web_search_results)
2002-12-17
- Lehman Brothers collapses due to exposure to subprime mortgage-backed securities and the housing bubble. (Source: web_search_results)
2008-09-15
- Washington Mutual files for bankruptcy. (Source: web_search_results)
2008-09-26
- General Motors files for bankruptcy due to high labor costs, reliance on inefficient vehicles, and the 2008 financial crisis. (Source: web_search_results)
2009-06-01
- CIT Group files for bankruptcy. (Source: web_search_results)
2009-11-01
- Corporate bankruptcies reach their highest point since this year, a trend observed in 2024 and 2025. (Source: related_documents, web_search_results)
2010
- Pacific Gas and Electric Company files for bankruptcy. (Source: web_search_results)
2019-01-14
- Early-pandemic peak of corporate bankruptcy filings. (Source: web_search_results)
2020
- 635 U.S. companies file for bankruptcy protection. (Source: web_search_results)
2023
- Silicon Valley Bank files for bankruptcy. (Source: web_search_results)
2023-03-10
- Signature Bank files for bankruptcy. (Source: web_search_results)
2023-03-12
- 694 U.S. companies file for bankruptcy protection, the highest annual figure since 2010. (Source: web_search_results)
2024
- 113 filings by companies with over $100 million in assets recorded through mid-2024. (Source: web_search_results)
2024-06-30
- 16 mega-bankruptcies (over $1 billion in assets) recorded in the first half of 2024, the busiest half-year since 2020. (Source: web_search_results)
2024-06-30
- December 2024 closes with 61 new bankruptcy petitions. (Source: web_search_results)
2024-12-31
- Luxurban Hotels Inc. files for bankruptcy. (Source: web_search_results)
2025-01-16
- Canoo Inc. files for bankruptcy. (Source: web_search_results)
2025-01-28
- Hyzon Motors Inc. files for bankruptcy. (Source: web_search_results)
2025-01-30
- Avinger Inc. files for bankruptcy. (Source: web_search_results)
2025-02-14
- Bio-path Holdings Inc. files for bankruptcy. (Source: web_search_results)
2025-02-18
- Omega Therapeutics Inc. files for bankruptcy. (Source: web_search_results)
2025-02-24
- Nikola Corp files for bankruptcy. (Source: web_search_results)
2025-02-25
- Crown Electrokinetics Corp files for bankruptcy. (Source: web_search_results)
2025-03-04
- Cutera Inc. files for bankruptcy. (Source: web_search_results)
2025-03-12
- Avenue Therapeutics Inc. files for bankruptcy. (Source: web_search_results)
2025-03-18
- 371 bankruptcy filings recorded throughout the first half of 2025, the highest total for the first half of the year since 2010. (Source: web_search_results)
2025-06-30
- 64 new corporate bankruptcy filings recorded. (Source: web_search_results)
2025-05
- 63 new corporate bankruptcy filings recorded, with Wolfspeed Inc., At Home Group Inc., Marelli Automotive Lighting USA LLC, Sunnova Energy International Inc., and Mosaic Sustainable Finance Corp. listing over $1 billion in liabilities. (Source: web_search_results)
2025-06
Web Search Results
- The Surge in Large Corporate Bankruptcy Filings - CSC Blog
The increase was consistent and persistent—December 2024 closed with 61 new petitions. Particularly notable was the rise in large bankruptcies: 113 filings by companies with more than $100 million in assets were recorded through mid-2024, an 8% increase year over year and 43% higher than pre-2020 averages (Cornerstone Research). Mega-bankruptcies (with $1B+ in assets) also surged, with 16 such filings in just the first half of 2024—the busiest half-year since 2020. [...] The years 2024–2025 have marked a critical inflection point in the bankruptcy and restructuring landscape, with a dramatic increase in large corporate bankruptcy filings—levels not seen since the aftermath of the Great Recession. This escalation signals a broader shift in the economic cycle, fueled by tightening financial conditions, stubborn inflation, and post-pandemic market realignment. [...] These economic pressures translated into a sharp spike in corporate bankruptcy activity. In 2024 alone, 694 U.S. companies filed for bankruptcy protection, surpassing the 635 cases recorded in 2023. This was the highest annual figure since 2010, exceeding even the early-pandemic peak of 2020 (spglobal.com).
- 2025 Public Company Bankruptcies
Skip to main content PLC | | Mar 18, 2025 | ATXI | Avenue Therapeutics Inc | | Mar 12, 2025 | CUTRQ | Cutera Inc | | Mar 4, 2025 | CRKN | Crown Electrokinetics Corp | | Feb 25, 2025 | NKLAQ | Nikola Corp | | Feb 24, 2025 | OMGAQ | Omega Therapeutics Inc | | Feb 18, 2025 | BPTH | Bio-path Holdings Inc | | Feb 14, 2025 | AVGR | Avinger Inc | | Jan 30, 2025 | HYZN | Hyzon Motors Inc | | Jan 28, 2025 | GOEVQ | Canoo Inc | | Jan 16, 2025 | LUXH | Luxurban Hotels Inc |
- 63 US corporate bankruptcies in June set up 2025 for ...
Industrial and consumer discretionary companies extended their dominance of corporate bankruptcy filings in June with a combined 107 filings, nearly the same number of filings as all other industries combined, according to Market Intelligence data. Sector information was not available for 154 bankruptcies filed in 2025. In June, 12 consumer discretionary companies and eight industrial companies filed for bankruptcy protection. [...] Five companies that sought bankruptcy protection in June listed more than $1 billion in liabilities at the time of filing: Wolfspeed Inc., At Home Group Inc., Marelli Automotive Lighting USA LLC, Sunnova Energy International Inc. and Mosaic Sustainable Finance Corp. [...] S&P Global Market Intelligence recorded 63 new bankruptcy filings from certain public and private companies in June, down from a revised count of 64 in May. The data includes companies with public debt and assets or liabilities of at least $2 million or private companies with assets or liabilities of at least $10 million at the time of filing. Still, 371 bankruptcy filings have been recorded throughout 2025, the highest total for the first half of the year since 2010.
- 5 Most Famous Business Bankruptcies
Lehman Brothers collapsed due to its heavy exposure to subprime mortgage-backed securities and the burst of the housing bubble. How did Enron’s bankruptcy impact corporate governance? Enron’s collapse led to the Sarbanes-Oxley Act, which strengthened corporate financial reporting and accountability. Why did General Motors (GM) file for bankruptcy in 2009? GM filed for bankruptcy due to high labor costs, reliance on inefficient vehicles, and the impact of the 2008 financial crisis. [...] The Enron Corporation was once hailed as one of the most innovative and fast-growing companies in the United States, but its spectacular collapse became one of the largest accounting scandals and bankruptcies in history. Enron was founded in 1985 as a merger between two natural gas companies. It quickly expanded its operations, transforming itself from a simple energy company into a diversified entity involved in energy trading, broadband, and international markets. [...] Toys “R” Us’ downfall can be attributed to a combination of poor financial decisions, increased competition from online retailers like Amazon, and a failure to adapt to changing consumer behavior. In 2005, the company was taken private in a leveraged buyout by private equity firms Bain Capital, KKR, and Vornado Realty Trust, which saddled it with $5 billion in debt. The company had so much debt that it couldn’t spend money to fix its stores or make its online shopping better.
- Largest U.S. bankruptcies as of January 2025
| Company (date of bankruptcy) | Assets in billion U.S. dollars | --- | | Lehman Brothers (Sep 15, 2008) | 691.06 | | Washington Mutual (Sep 26, 2008) | 327.91 | | Silicon Valley Bank (Mar 10, 2023) | 209 | | Signature Bank (Mar 12, 2023) | 110.4 | | Worldcom Inc. (Jul 2, 2002) | 103.91 | | General Motors (Jun 1, 2009) | 82.29 | | Pacific Gas and Electric Company (Jan 14, 2019) | 71 | | CIT Group (Nov 1, 2009) | 71 | | Enron (Dec 2, 2001) | 65.5 | | Conseco (Dec 17, 2002) | 61.39 | [...] in one format Corporate insolvencies worldwide 29 page/s English pptx Detailed references Everything on "Corporate insolvencies worldwide" in one document: edited and divided into chapters, including detailed references. Go to report Further reports Bankruptcy in the U.S. Corporate bonds in the U.S.