By Bansari Mayur Kamdar
(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
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.
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
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
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
Envision Healthcare May 15 The KKR-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 “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
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D’Silva, Shounak Dasgupta and Arun Koyyur)