Factbox: US corporate bankruptcies at highest level since 2020, WeWork joins the list
09/11/2023 12:14
(Updates with data for October)
By Bansari Mayur Kamdar
Nov 9 (Reuters) -
Bankruptcies by U.S. companies jumped amid decades-high interest rates and
sticky inflation, with
WeWork
being the latest to succumb after grappling with expensive leases and
work-from-home trends.
Chapter 11 filings in the first 10 months of 2023 have surpassed last year's
total filings, according to data from S&P Global Market Intelligence.
There were 50 corporate bankruptcy petitions in October, the data
showed, bringing the year-to-date count to 561, its highest since 2020.
Four companies with over $1 billion in liabilities filed for bankruptcy
last month, more than any other month this year and up from just one such filing
in September, buckling under the weight of economic headwinds and a tight
domestic labor market that added to the pressure on the companies.
Some notable bankruptcies in 2023 with more than $1 billion in liabilities:
Companies with over $1 Bankruptcy Reason
billion in liabilities announcement
date
WeWork The SoftBank
Nov 6 Group-backed startup sought
bankruptcy protection after its
bets on companies using more of
its office-sharing space soured.
Air Methods The private
Oct 24 equity-owned medical helicopter
company filed for bankruptcy
after saying its business had
suffered due to rising interest
rates, higher labor costs and a
recent U.S. ban on "surprise"
medical bills.
Akumin The radiology
Oct 22 provider filed for bankruptcy
and went private in a deal with
Stonepeak Partners.
Rite Aid One of the largest
Oct 15 U.S. pharmacy retailers filed
for bankruptcy as it came under
pressure from lawsuits alleging
that the drugstore chain helped
fuel the opioid crisis in the
U.S.
MVK FarmCo The largest producer
Oct 13 of stone fruit in North America,
doing business as Prima Wawona,
filed for bankruptcy, citing
significant headwinds, including
increased costs and
weather-related impacts.
SmileDirectClub Sept 29 The dental products maker
voluntarily filed for Chapter 11
and said it is seeking more
capital through a transaction
where its founders have
committed to invest at least $20
mln.
Amyris Aug 9 The synthetic biotech company
filed for bankruptcy and is
planning to sell its consumer
brands to improve the company's
liquidity position.
Yellow Corp Aug 6 The trucking firm filed for
Chapter 11 bankruptcy protection
and said it would wind down,
after struggling with a mounting
debt load.
Voyager Aviation Holdings July 27 The commercial aircraft leasing
company sought bankruptcy
protection, concurrently
announcing a sale agreement with
an affiliate of Azorra Aviation
Holdings.
Cyxtera Technologies June 4 The data-center operator filed
for bankruptcy as it struggles
to pay down debt and faces
funding crunch.
PGX Holdings June 4 PGX filed for bankruptcy as it
lost a court case brought by the
CFPB over its billing for credit
repair services.
Incora June 1 The aerospace supplier, formed
through the merger of Wesco and
Pattonair, filed for bankruptcy
due to depressed demand for
aircraft maintenance and
litigation over its efforts to
restructure its debt outside of
bankruptcy.
Diebold Nixdorf June 1 The ATM maker filed for
bankruptcy, saying it had
reached an agreement to reduce
the company's overall debt by
$2.1 billion.
Envision Healthcare May 15 The KKR & Co Inc-backed medical
staffing firm filed for
bankruptcy, impacted by high
labor costs and a long battle
with insurer UnitedHealth Group.
Kidde-Fenwal May 14 The unit of Carrier Global that
specializes in fire control
systems, filed for bankruptcy,
as it buckled under the weight
of lawsuits alleging that
"forever chemicals" in its
firefighting foam products have
contaminated water sources
around U.S. airports and
military bases.
Monitronics International May 14 The home security systems
provider with more than $1
billion in debt due in 2024
filed for bankruptcy a second
time to help implement its
restructuring.
Whittaker, Clark & April 26 The talc supplier filed for
Daniels bankruptcy, citing a "deluge" of
lawsuits alleging its talc
products caused asbestos
exposure and cancer.
Bed Bath & Beyond April 23 Bed Bath & Beyond filed for
bankruptcy after the home goods
retailer failed to secure funds
to stay afloat.
LTL Management April 4 The Johnson & Johnson talc unit
filed for bankruptcy 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 Financial Group March 17 SVB Financial Group filed for
bankruptcy to seek buyers for
its assets, days after its
former unit Silicon Valley Bank
was taken over by U.S.
regulators.
Diamond Sports Group March 14 Diamond Sports Group, which
provides local television
broadcasts for nearly half of
NBA, NHL and MLB games, filed
for bankruptcy, caught between
expensive broadcast rights
agreements and sports viewers'
cord-cutting habits.
Avaya Feb 14 Avaya filed for bankruptcy and
secured a financing of $780
million as it restructures its
business.
Serta Simmons Bedding Jan 23 Mattress maker Serta Simmons
Bedding filed for bankruptcy in
an effort to eliminate most of
its debt.
Party City Holdco Jan 17 The party supplies retailer
filed for bankruptcy, as
persistently high inflation
takes a toll on consumer
spending.
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(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Shounak Dasgupta,
Arun Koyyur and Anil D'Silva)
((BansariMayur.Kamdar@thomsonreuters.com; Follow on X: @bansarikamdar))
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