2 days ago
US bankruptcies are surging past 2020 pandemic levels
Some beloved 1990s and 2000s brands were among the companies to file for bankruptcy this summer, continuing a troubling trend that hints at pain beneath the surface of the US economy.
Forever 21 and Joann's are among the companies that filed for bankruptcy recently, with many famous retailers closing stores and reducing their physical footprint.
Data from S&P 500 Global shows that this summer, US corporate bankruptcy filings surged to their highest level since 2020, with 71 public and private companies filing for bankruptcy last month. That's an increase from June, when 63 companies filed for bankruptcy.
Despite a strong stock market and 3% economic growth in the second quarter, some once-prominent names reported hard times in July, citing difficult economic conditions.
"Companies are contending with elevated interest rates as uncertainty from US tariff policy pressures costs and supply chain resilience," S&P 500 Global said.
Canned goods producer Del Monte Foods, for example, filed for Chapter 11 bankruptcy, noting declining demand and high inventory costs. Leadership also cited a heavy debt burden. Del Monte had combined debts of between $1 billion and $10 billion, Business Insider reported last month.
While the August numbers have not been reported yet, a few prominent companies have already filed for bankruptcy, including fashion retailer Claire's. The retailer submitted its second Chapter 11 filing on August 6, also citing declining demand and high interest rates.
That puts it in the same category as Forever 21, Rite Aid, and Party City, all once-popular retail chains that have filed for bankruptcy and closed locations in 2025.
