Factbox: WeWork joins growing list of US corporate bankruptcies in 2023

Rite Aid

07/11/2023 14:38

(Add details on WeWork and Rite Aid)
    By Bansari Mayur Kamdar
       Nov 7 (Reuters) - 
    Bankruptcies by U.S. companies jumped amid decades-high interest rates and
sticky inflation, with 
    WeWork
     the latest to succumb after grappling with expensive leases and corporate
clients cancelling due to a trend toward employees working from home.
  
    Chapter 11 filings in the first nine months of 2023 have surpassed last
year's total filings, according to data from S&P Global Market Intelligence.
    There were 62 corporate bankruptcy petitions in September, the data showed,
bringing the year-to-date count to 516, its highest since 2020.
    Some notable bankruptcies in 2023 with more than $1 billion in liabilities:
    
 Companies with over    Bankruptcy    Reason
 $1 billion in          announcement  
 liabilities            date          
             WeWork                               The SoftBank-backed startup
                        Nov 6         sought bankruptcy protection as its bets
                                      on companies using more of its
                                      office-sharing space soured.
                                      
             Rite Aid                             Rite Aid, one of the largest
                        Oct 15        U.S. pharmacy retailers, filed for
                                      bankruptcy as it came under pressure from
                                      lawsuits alleging it helped fuel the U.S.
                                      opioid crisis 
                                      
 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       July 27       The commercial aircraft leasing company
 Holdings                             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-backed  KKR.N  medical staffing
                                      firm filed for bankruptcy, impacted by
                                      high labor costs and a long battle with
                                      insurer UnitedHealth Group  UNH.N .
 Kidde-Fenwal            May 14       The unit of Carrier Global  CARR.N  that
                                      specializes in fire control systems,
                                      filed for bankruptcy, as it buckled under
                                      the weight of lawsuits alleging "forever
                                      chemicals" in its firefighting foam
                                      products have contaminated water sources
                                      around U.S. airports and military bases.
 Monitronics             May 14       The home security systems provider with
 International                        more than $1 billion in debt due in 2024
                                      filed for  bankruptcy a second time to
                                      help implement its restructuring.
 Whittaker, Clark &      Apr 26       The talc supplier filed for bankruptcy,
 Daniels                              citing a "deluge" of lawsuits alleging
                                      its talc products caused asbestos
                                      exposure and cancer.
 Bed Bath & Beyond       Apr 23       Bed Bath & Beyond filed for bankruptcy
                                      after the home goods retailer failed to
                                      secure funds to stay afloat.
 LTL Management          Apr 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     Mar 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    Mar 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.
 

 (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva,
Shounak Dasgupta and Arun Koyyur)
 ((BansariMayur.Kamdar@thomsonreuters.com; Follow on X: @bansarikamdar))