S&P: US corporate bankruptcies hit 15-year high in first half
A report from S&P Global Market Intelligence shows that large US corporate bankruptcy filings reached 371 in the first half of 2025, up about 11% year-over-year, marking a new high for the same period since 2010. The report attributes this to deteriorating corporate liquidity, high interest rates, weak consumer spending, and tariff pressures.
At a Glance
- According to S&P Global Market Intelligence data, the total number of large U.S. corporate bankruptcy filings in the first half of 2025 (through June) rose to 371, an increase of about 11% from 335 in the same period last year. The agency tracks companies that, at the time of filing for bankruptcy, had public debt or assets/liabilities of at least $2 million, or private companies with assets/liabilities of at least $10 million.
- This level marks the highest first-half total since 2010 (when there were 468 filings in the same period), and the report states that 2025 could become one of the busiest years for corporate bankruptcies in over a decade.
- "Corporate liquidity has deteriorated overall in 2025, with many companies seeing rising debt levels, while the Federal Reserve is prepared to hold its benchmark interest rate at current levels until summer," S&P said in the report. "Meanwhile, consumer spending is under pressure from a cooling job market, inflation that remains above monetary policymakers' targets, and tariffs imposed by the Trump administration."
In-Depth Analysis
Since the Federal Reserve began raising interest rates in 2022 to combat inflation, chief financial officers of companies tracked by S&P have increasingly turned to the courts for bankruptcy protection. Bankruptcy filings have risen from 373 in 2022 to 634 in 2023, and further reached 688 last year.
So far this year, distress has been concentrated among industrial companies and so-called consumer discretionary companies, which together account for 107 bankruptcy filings, followed by healthcare companies (27 filings) and consumer staples companies (19 filings).
Among the largest companies to file for bankruptcy so far this year are crafts retailer Joann, which listed debts of approximately $2.4 billion and assets of approximately $2.2 billion; and semiconductor manufacturer Wolfspeed, which had total funded debt of approximately $6.7 billion when it filed for Chapter 11 bankruptcy protection as of June 30. According to a previous report by CFO Dive, just one week after filing for bankruptcy, Wolfspeed appointed industry veteran Gregor van Issum to take over as chief financial officer.