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Factbox-U.S. corporate bankruptcies at highest level since 2010

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By Bansari Mayur Kamdar

(Reuters) – U.S. companies are feeling the heat of decades-high interest rates and sticky inflation, with several filing for bankruptcy protection as the era of easy money draws to a close.

The tally of U.S. companies that have gone bankrupt so far in 2023 is higher than the first five months of any year since 2010, data from S&P Global Market Intelligence showed.

There were 54 corporate bankruptcy petitions in May compared with 52 in April, according to S&P Global, with the year-to-date count more than doubling to 286 from a year earlier.

Consumer discretionary companies reported a higher number of bankruptcies than any other sector in 2023, according to S&P Global, while industrials sector also saw a sharp uptick with eight companies including Monitronics filing for bankruptcy in May.

Vice Media, was the latest victim in the communication services sector as a weak advertising market hits tech and news media companies.

Company Bankruptcy Reason

announcement

date

The KKR & Co Inc-backed

Envision Healthcare May 15 medical staffing firm filed for

bankruptcy protection, impacted by

high labor costs and a long battle

with insurer UnitedHealth Group for

the past few years.

The subsidiary of Carrier

Kidde-Fenwal May 14 Global that specializes in fire

control systems, filed for

bankruptcy, as it buckles under the

weight of lawsuits alleging that

“forever chemicals” in its

firefighting foam products have

contaminated water sources around

U.S. airports and military bases.

The home security systems

Monitronics May 14 provider with more than $1 billion in

International debt due in 2024 filed for

bankruptcy a second time to help

implement its restructuring.

Apr 26 The talc supplier filed for

Whittaker, Clark & bankruptcy protection, citing a

Daniels “deluge” of lawsuits alleging that

its talc products caused asbestos

exposure and cancer.

Bed Apr 23 Bed Bath & Beyond filed for

Bath & Beyond bankruptcy protection after the home

goods retailer failed to secure funds

to stay afloat.

LTL Apr 4 The Johnson & Johnson talc subsidiary

Management filed for bankruptcy protection 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 Mar 17 SVB Financial Group filed for

Financial Group bankruptcy protection to seek buyers

for its assets, days after its former

unit Silicon Valley Bank was taken

over by U.S. regulators.

Diamond Mar 14 Diamond Sports Group, which provides

Sports Group local television broadcasts for

nearly half of NBA, NHL and MLB

games, filed for bankruptcy

protection, 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 Jan 23 Mattress maker Serta Simmons Bedding

Simmons Bedding filed for bankruptcy protection in an

effort to eliminate most of its debt.

Party Jan 17 The party supplies retailer filed for

City Holdco bankruptcy protection, as

persistently high inflation takes a

toll on consumer spending.

Source: S&P Global Market Intelligence, Refinitiv Eikon

(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D’Silva and Vinay Dwivedi)

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