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 four months of any year since 2010, data from S&P Global (NYSE:SPGI) Market Intelligence showed.
Graphic: U.S. corporate bankruptcy filings highest since 2010 - https://fingfx.thomsonreuters.com/gfx/mkt/jnpwyrrolpw/U.S.%20corporate%20bankruptcy%20filings.png
There were 54 corporate bankruptcy petitions in April, down from 70 in March, S&P Global said. Still, the year-to-date count more than doubled to 236 from a year ago.
Consumer discretionary companies logged a higher number of bankruptcies than any other sector in 2023, according to S&P Global, with the once high-flying retailer Bed Bath & Beyond (NASDAQ:BBBY) among the latest victims.
Largest bankruptcies of 2023 (with more than $1 billion in liabilities):
Company Bankruptcy Reason
announcement
date
04-26-23 The talc supplier filed for
Whittaker, Clark bankruptcy protection, citing a
& Daniels Inc. "deluge" of lawsuits alleging that
its talc products caused asbestos
exposure and cancer.
Bed 04-23-23 Bed Bath & Beyond filed for
Bath & Beyond bankruptcy protection after the
Inc. home goods retailer failed to
secure funds to stay afloat.
LTL 04-04-23 The Johnson & Johnson (NYSE:JNJ) talc
Management LLC subsidiary 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 03-17-23 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.
03-14-23 Diamond Sports Group, which
Diamond Sports provides local television
Group LLC 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.
02-14-23 Avaya filed for bankruptcy and
Avaya Inc. secured a financing of $780 million
as it restructures its business.
01-23-23 Mattress maker Serta Simmons
Serta Simmons Bedding filed for bankruptcy
Bedding LLC protection in an effort to
eliminate most of its debt.
01-17-23 The party supplies retailer filed
Party City for bankruptcy protection, as
Holdco Inc. persistently high inflation takes a
toll on consumer spending.
Source: S&P Global Market Intelligence, Refinitiv Eikon