Total bankruptcy filings rose 13 percent, and business bankruptcies rose nearly 30 percent, in the twelve-month period ending Sept. 30, 2023, according to the U.S. Courts. This continues a moderate rebound after more than a decade of sharp decline. Corporate bankruptcy filings in the U.S. rose again in December 2023, ending the year with the most filings since 2010.
S&P Global Market Intelligence recorded 50 bankruptcy filings in the month. The total was an increase from the 33 recorded in November.
There were 642 total filings in 2023, significantly above the previous two years and marginally more than in 2020, which saw an influx of Covid-19 related filings.
Seven industrial companies and seven consumer discretionary companies filed for bankruptcy over the month, followed by six filings among information technology companies and six from the healthcare sector.
Consumer discretionary companies recorded the most bankruptcies in 2023 with 82 filings. Many of the companies attributed their filings to rising interest rates and inflation, which impacted their post-pandemic operations.
There were bankruptcy filings in 19 states and the District of Columbia in December, with the greatest number originating from California, Texas, and Florida.
During the year, 95 California companies sought bankruptcy protection, followed by 75 from Texas and 68 from Florida. New York added 58 filings in 2023, while New Jersey registered 31.
Additional states with 15 or more filings in 2023 included Massachusetts, Georgia, Nevada, Illinois, North Carolina, and Pennsylvania.
Source: U.S. Bankruptcies hit 13-year peak in 2023; 50 new filings in December. (January 9, 2024)
