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Corporate ‘Mega’ Bankruptcies Soar Amid ‘Financial Distress’

Corporate ‘Mega’ Bankruptcies Soar Amid ‘Financial Distress’

Summary

In 2025, large corporate bankruptcies in the U.S. are rising, mainly due to inflation, high interest rates, and regulatory uncertainty. A report notes 32 mega bankruptcies—companies with over $1 billion in assets—occurred in one year, the highest on record since the pandemic began. Companies cite reduced demand and higher costs as key factors for Chapter 11 filings.

Key Facts

  • In 2025, the U.S. saw 32 mega bankruptcies, surpassing the two-decade average of 23.
  • 17 mega bankruptcies took place in the first half of 2025.
  • Companies filing for bankruptcy often blame high inflation and interest rates.
  • Notable bankruptcies include firms in the healthcare and retail sectors, like Rite Aid.
  • Personal bankruptcies also increased by 11.8% compared to the previous year.
  • Policy uncertainty, especially in renewable energy and trade, affects corporate stability.
  • The retail chain At Home filed for bankruptcy citing tariff-related challenges.
  • 117 bankruptcy filings involved companies with assets over $100 million in the past year.

Source Information