Data from S&P Global Market Intelligence indicates that the first quarter of 2025 witnessed a concerning rise in corporate bankruptcies across the United States, reaching a peak not observed since 2010. A total of 188 bankruptcies were filed by large companies during this period, compared to only 139 filings in the corresponding quarter of the previous year.

Historical Context

This latest number represents the highest quarterly tally since 2010 when the country struggled with the aftermath of the financial crisis, which saw 254 bankruptcies in the first quarter of that year.

Contributing Factors

S&P Global attributes this increase in bankruptcies to ongoing challenges faced by companies, particularly those with weaker balance sheets. As debt matures, these companies are faced with the necessity to refinance at higher interest rates than those they initially secured, putting additional financial strain on them.

Sector Analysis

In terms of sector-specific data, the industrials sector reported the highest number of bankruptcies, totaling 32 filings. This was closely followed by the consumer discretionary sector, which saw 24 bankruptcies. Combined, these two categories accounted for nearly 30% of all bankruptcies in the first quarter.

Notably, sectors registered declines, with industrials down 0.53% and consumer discretionary down a significant 13.97% in Q1.

Major Notable Filings

Among the prominent companies that filed for bankruptcy this quarter were:

• F21 OpCo LLC – parent company of the Forever 21 brand
• Nikola Corporation – an electric vehicle manufacturer
• Joann Fabrics – a crafts retailer
• 23andMe – genetic testing company
• Hooters – restaurant chain

Comparison with Past Trends

While there has been an uptick in bankruptcies compared to last year’s figures, it’s important to contextualize this trend. The current levels remain considerably lower than those witnessed during the height of the financial crisis, which recorded a staggering 1,836 bankruptcies in 2009. Since the onset of the COVID-19 pandemic in 2020, July 2020 recorded the highest monthly total, with 74 bankruptcies.