- Corporate bankruptcies just hit their highest levels since 2010, according to new data.
- This year's bankruptcies include Party City, Serta Simmons, and the parent of Silicon Valley Bank.
Rising interest rates, supply chain woes, and the online shopping boom are proving a lethal combination for many businesses.
There were 54 corporate bankruptcies in the US in May, bringing this year's total to 286, $4 That's the highest number of US corporate bankruptcies recorded for the first five months of the year since 2010, the data provider said.
Consumer discretionary companies, which focus on selling non-essential goods, lead the spate of bankruptcies with 37 filings so far in 2023, according to S&P's Market Intelligence data.
This year's bankruptcies include party goods retailer$4 and mattress seller $4 both of which filed for restructuring protection in January. $4 also filed for Chapter 11 bankruptcy protection in April, a process that has led to hundreds of store closures.
The parent company of $4 also filed for bankruptcy after questions about its financial stability in an environment of rising rates led to a fatal run on deposits.
The Federal Reserve has $4 10 times since March to cool the economy and slow rapidly rising costs for goods and services. It's unclear $4 next, and some experts predict a recession, which will only put pressure on more companies, especially those that need to pay off debts.
Of course, $4 started well before the economic slowdown, and there are signs that $4heavily, even if their shopping habits have changed.
Certain professionals, meanwhile, stand to make a lot of money from the rise in bankruptcies, including lawyers and bankers. See the $4 and $4 poised for a boon in business as the economy falters.