Reported 5 months ago
April 2024 saw a notable spike in US corporate bankruptcies, reaching the highest monthly level in a year. RapidRatings Executive Chair James Gellert attributes this trend to the end of a period marked by easy access to cheap capital and low interest rates, which allowed struggling companies to survive. Sectors like retail, entertainment, food, and auto are particularly impacted, with changing consumer behaviors post-COVID contributing to the strain. Gellert notes that bankruptcies are not limited to the US, with a global trend of increased Chapter 11 filings observed in the second quarter of 2024.
Source: YAHOO