Corporate Bankruptcies Surge in August and Consumer Companies Lead Total Filings for 2024
Corporate bankruptcies surged in August and have already hit their highest total for for the first eight months of the year since 2020.
Sixty three public and private companies filed for bankruptcy in August, according to data from S&P Global Market Intelligence. This total is up from a revised 49 filings in July and represents the third highest monthly total in 2024 thus far, trailing behind the 72 filings in June and 68 filings in April.
“U.S. companies continue to struggle with several issues this year, including high interest rates and geopolitical uncertainty,” read the report.
Three filings in August, including one for perfumes and cosmetics distributor Avon International Operations, owed over $1 billion in debts. Since the start of 2024, 21 companies with more than $1 billion in liabilities have filed for bankruptcy.
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Overall, there have been 452 total bankruptcy filings since the start of 2024. The consumer discretionary category, which includes footwear companies, has seen the most bankruptcy filings compared to other sectors so far this year, with 69 filings since the start of 2024 including eight filings in August.
In June, 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. And in April, apparel retailer Express filed for bankruptcy and started the process to close 106 stores and 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.
