US companies are filing for Chapter 11 bankruptcy at the fastest pace since 2013, the Financial Times reported Tuesday.
Year-to-date filings reached 3,427 on June 24, bringing the metric close to the 3,491 filings made in the first half of 2008.
The wave of bankruptcies was largely driven by the coronavirus pandemic and its disruption to global supply chains, consumer spending, and manufacturing activity.
Firms across a range of industries have entered insolvency, from car-rental chain Hertz to circus company Cirque du Soleil.
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The coronavirus’ economic fallout is fueling Chapter 11 bankruptcy filings at the fastest pace since 2013, the Financial Times reported Tuesday.
US filings totaled 3,427 on June 24, according to data from Epiq seen by the Times. The reading also closes in on the financial-crisis reading of 3,491 companies entering bankruptcy in the first half of 2008.
Chapter 11 bankruptcy is among the most popular options for businesses to restructure in the midst of insolvency. Some of the biggest names to file in 2020 include Hertz, JC Penney, J Crew, and Chesapeake Energy. Circus company Cirque du Soleil is one of the latest to join the pack after filing for bankruptcy on Monday.
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Source:: Businessinsider – Finance