Factbox: US corporate bankruptcies set for highest level since 2020
08/12/2023 16:08
(Updates with November data)
By Bansari Mayur Kamdar
Dec 8 (Reuters) - Bankruptcy filings by U.S. companies this year are on
track to hit their highest since the pandemic, amid high interest rates and
sticky inflation, with WeWork being the latest to succumb after grappling with
expensive leases and work-from-home trends.
There were 34 corporate bankruptcy petitions in November, according to data
from S&P Global Market Intelligence, bringing the year-to-date count to 591, the
highest since 2020.
November saw the lowest number of bankruptcy filings in a year, S&P Global
added, easing from a revised tally of 49 in October.
WeWork is the latest company with over $1 billion in liabilities to seek
bankruptcy protection, bringing the year-to-date total of filings from firm with
debts as big to 21. The companies buckled under the weight of economic headwinds
as well as a tight domestic labor market.
Notable bankruptcies in 2023:
Companies with over $1 Bankruptcy Reason
billion in liabilities announcement
date
WeWork Nov 6 The SoftBank Group-backed
startup sought bankruptcy
protection after its bets on
companies using more of its
office-sharing space soured.
Air Methods Oct 24 The private 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 Oct 22 The radiology provider filed for
bankruptcy and went private in a
deal with Stonepeak Partners.
Rite Aid Oct 15 One of the largest 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 Oct 13 The largest producer 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, Anil D'Silva and Shinjini Ganguli)
((BansariMayur.Kamdar@thomsonreuters.com; Follow on X: @bansarikamdar))
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