According to data published by the Kobeissi Letter and S&P Global Market Intelligence, the US witnessed 446 large company bankruptcies in the first half of 2025, a 12% increase compared to the pandemic year of 2020.
Key Bankruptcy Figures
A total of 446 large bankruptcy filings have been recorded in the US this year, marking the highest total in 15 years. The Kobeissi Letter states that this surpasses the yearly totals of 405 and 373 for 2021 and 2022, respectively. July alone saw 71 bankruptcies, the highest single-month total since July 2020.
Sectors Most Affected by Bankruptcies
The surge in bankruptcies has been most significant in the industrial and consumer discretionary sectors, with 70 and 61 filings year-to-date, respectively. Healthcare had 32 cases, and the energy sector reported only four bankruptcies. Notable brands that have collapsed in 2025 include Forever 21, Joann’s, Party City, and Rite Aid.
Financial Reasons Behind the Increase in Bankruptcies
Economists attribute the increase in bankruptcies to rising tariffs, increased interest rates, and higher borrowing costs. The tariffs imposed by the Trump administration have added financial burden on small and medium-sized businesses. Furthermore, as of early 2025, 43% of Russell 2000 companies were unprofitable, the highest level since 2020.
The current situation regarding bankruptcies in the US highlights a significant increase in financial pressure on companies and consumers, necessitating careful analysis and potential economic support measures.
