NEW YORK: US corporate bankruptcy filings in June surged to their highest monthly level since early 2020, according to estimates from S&P Global Intelligence, reported Xinhua.
At least 75 companies applied for bankruptcy protection in June, bringing this year’s total number to 346, S&P said in a report released on Monday. This has also surpassed half-year figures seen in the past 13 years.
The pace of US corporate bankruptcy accelerated from the first months of this year. In April, bankruptcies started spiking to stand-out levels, the ratings agency reported.
This is rivalled by only the busiest months in 2020 when pandemic chaos drove several firms out of business.
Electric vehicle maker Fisker Group Inc. entered bankruptcy proceedings on June 17, joined in the filing by its parent company Fisker Inc.
The company paused production of its flagship Ocean SUV in March as it sought funding and a potential transaction with a larger automaker.
Last month, Chicken Soup for the Soul Entertainment, which operates Redbox DVD rental kiosks and streaming website Crackle, also filed for bankruptcy.
S&P said high interest rates, supply chain issues, and slowing consumer spending have fueled the surge in closures of companies.
Among the companies seeking bankruptcy, the consumer discretionary sector continued to lead others, with 55 total bankruptcy filings this year, and 16 new filings registered in June, according to S&P.
Healthcare and industrials recorded the second-highest bankruptcy totals in 2024, respectively, with 40 filings each. – BERNAMA-XINHUA
