Consumer Companies Lead Corporate Bankruptcies in 2024 Thus Far
Corporate bankruptcies slowed in July but are still on track to have their biggest year since 2020.
Fifty public and private companies filed for bankruptcy in July, according to data from S&P Global Market Intelligence. This total is down from a revised 72 filings in June and represents the lowest monthly filing total since February.
“U.S. corporate reorganizations have risen in response to higher interest rates, which have remained at roughly 20-year highs for the past year, rising geopolitical uncertainty and an overall economic cooling,” read the report from S&P Global Market Intelligence.
Among the notable filings in July was Home goods retailer Conn’s Inc., which had more than $1 billion in debts according to the filing.
Since the start of 2024, there have been 392 total bankruptcy filings, which represents the highest total for this period since 2020. Eighteen of these bankruptcies have had more than $1 billion in liabilities, double the total in the same period the prior year. The consumer discretionary category, which includes footwear companies, has seen the most bankruptcy filings compared to other sectors so far this year, with 60 filings since the start of 2024.
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Notably, outdoor and athletic gear retailers Eastern Mountain Sports and Bob’s Stores, which are both owned by GoDigital Media Group, filed jointly for Chapter 11 bankruptcy in June. In April, apparel retailer Express filed for bankruptcy and started the process to close 106 stores. Also in April, the U.S. based entities of slip-resistant footwear company Shoes for Crews (or Never Slip Holdings, Inc.) filed for bankruptcy in an effort to undergo a sale of its business.
In 2023, U.S. corporate bankruptcy filings hit 637. Along with consumer discretionary, healthcare and industrials accounted for the most bankruptcy filings in 2023.
