Factbox: U.S. corporate bankruptcies at highest level since 2010

Bed Bath & Beyond

09/05/2023 18:08

By Bansari Mayur Kamdar
       May 9 (Reuters) - U.S. companies are feeling the heat of decades-high
interest rates and sticky inflation, with several filing for bankruptcy
protection as the era of easy money draws to a close.
    The tally of U.S. companies that have gone bankrupt so far in 2023 is higher
than the first four months of any year since 2010, data from S&P Global Market
Intelligence showed.    
    There were 54 corporate bankruptcy petitions in April, down from 70 in
March, S&P Global said. Still, the year-to-date count more than doubled to 236
from a year ago.
    Consumer discretionary companies logged a higher number of bankruptcies than
any other sector in 2023, according to S&P Global, with the once high-flying
retailer Bed Bath & Beyond among the latest victims. 

  Largest bankruptcies of 2023 (with more than $1 billion in liabilities):    
 
 Company           Bankruptcy    Reason
                   announcement  
                   date          
                   04-26-23      The talc supplier filed for
 Whittaker, Clark                bankruptcy protection, citing a
 & Daniels Inc.                  "deluge" of lawsuits alleging that
                                 its talc products caused asbestos
                                 exposure and cancer.
             Bed   04-23-23      Bed Bath & Beyond filed for
 Bath & Beyond                   bankruptcy protection after the
 Inc.                            home goods retailer failed to
                                 secure funds to stay afloat.
             LTL   04-04-23      The Johnson & Johnson talc
 Management LLC                  subsidiary filed for bankruptcy
                                 protection for a second time with
                                 the intent to present a
                                 reorganization plan with a proposed
                                 $8.9 billion settlement to a judge
                                 as soon as May 14. 
             SVB   03-17-23      SVB Financial Group filed for
 Financial Group                 bankruptcy protection to seek
                                 buyers for its assets, days after
                                 its former unit Silicon Valley Bank
                                 was taken over by U.S. regulators.
                   03-14-23      Diamond Sports Group, which
 Diamond Sports                  provides local television
 Group LLC                       broadcasts for nearly half of NBA,
                                 NHL and MLB games, filed for
                                 bankruptcy protection, caught
                                 between expensive broadcast rights
                                 agreements and sports viewers'
                                 cord-cutting habits.
                   02-14-23      Avaya filed for bankruptcy and
 Avaya Inc.                      secured a financing of $780 million
                                 as it restructures its business.
                   01-23-23      Mattress maker Serta Simmons
 Serta Simmons                   Bedding filed for bankruptcy
 Bedding LLC                     protection in an effort to
                                 eliminate most of its debt.
                   01-17-23      The party supplies retailer filed
 Party City                      for bankruptcy protection, as
 Holdco Inc.                     persistently high inflation takes a
                                 toll on consumer spending.
 Source: S&P Global Market Intelligence, Refinitiv Eikon

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 (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva)
 ((BansariMayur.Kamdar@thomsonreuters.com;  Twitter: @BansariKamdar;))