By Bansari Mayur Kamdar
(Reuters) -U.S. corporate bankruptcy filings touched a 13-year high in 2023, as elevated interest rates and sticky inflation hit the companies.
There were 50 corporate bankruptcy petitions in December, according to data from S&P Global Market Intelligence, bringing the total count last year to 642, the highest since 2010.
Consumer discretionary sector recorded the highest bankruptcies in 2023, followed closely by healthcare and industrials companies.
Notable bankruptcies in 2023:
Companies with over Bankruptcy Reason
$1 billion in announcement
liabilities date
Pennsylvania Real Dec. 10 The trust entered a restructuring
Estate Investment agreement with debtors and filed for
Trust Chapter 11 to implement the restructuring
transactions
WeWork Nov. 6 The SoftBank Group-backed startup sought
bankruptcy protection after its bets on
companies using more of its
office-sharing space soured.
Air Methods Corp Oct. 24 The private equity-owned medical
helicopter company filed for bankruptcy
after saying its business had suffered
due to rising interest rates, higher
labor costs and a recent U.S. ban on
“surprise” medical bills.
Akumin Oct. 22 The radiology provider filed for
bankruptcy and went private in a deal
with Stonepeak Partners.
Rite Aid Oct. 15 One of the largest U.S. pharmacy
retailers filed for bankruptcy as it
comes under pressure from lawsuits
alleging that the drugstore chain helped
fuel the opioid crisis in the U.S.
MVK FarmCo Oct. 13 The largest producer of stone fruit in
North America, doing business as Prima
Wawona, filed for bankruptcy citing
significant headwinds, including
increased costs and weather-related
impacts.
SmileDirectClub Sept. 29 The dental products maker voluntarily
filed for Chapter 11 and said it is
seeking more capital through a
transaction where its founders have
committed to invest at least $20 mln.
Amyris Aug. 9 The synthetic biotech company filed for
bankruptcy and is planning to sell its
consumer brands to improve the company’s
liquidity position.
Yellow Corp Aug. 6 The trucking firm filed for Chapter 11
bankruptcy protection and said it would
wind down, after struggling with a
mounting debt load.
Voyager Aviation July 27 The commercial aircraft leasing company
Holdings sought bankruptcy protection,
concurrently announcing a sale agreement
with an affiliate of Azorra Aviation
Holdings.
Cyxtera Technologies June 4 The data-center operator filed for
bankruptcy as it struggles to pay down
debt and faces funding crunch.
PGX Holdings June 4 PGX filed for bankruptcy as it lost a
court case brought by the CFPB over its
billing for credit repair services.
Incora June 1 The aerospace supplier, formed through
the merger of Wesco and Pattonair, filed
for bankruptcy due to depressed demand
for aircraft maintenance and litigation
over its efforts to restructure its debt
outside of bankruptcy.
Diebold Nixdorf June 1 The ATM maker filed for bankruptcy,
saying it had reached an agreement to
reduce the company’s overall debt by $2.1
billion.
Envision Healthcare May 15 The KKR & Co Inc-backed medical staffing
firm filed for bankruptcy, impacted by
high labor costs and a long battle with
insurer UnitedHealth Group.
Kidde-Fenwal May 14 The unit of Carrier Global that
specializes in fire control systems,
filed for bankruptcy, as it buckled under
the weight of lawsuits alleging that
“forever chemicals” in its firefighting
foam products have contaminated water
sources around U.S. airports and military
bases.
Monitronics May 14 The home security systems provider with
International more than $1 billion in debt due in 2024
filed for bankruptcy a second time to
help implement its restructuring.
Whittaker, Clark & April 26 The talc supplier filed for bankruptcy,
Daniels citing a “deluge” of lawsuits alleging
its talc products caused asbestos
exposure and cancer.
Bed Bath & Beyond April 23 Bed Bath & Beyond filed for bankruptcy
after the home goods retailer failed to
secure funds to stay afloat.
LTL Management April 4 The Johnson & Johnson talc unit filed for
bankruptcy 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 Financial Group March 17 SVB Financial Group filed for bankruptcy
to seek buyers for its assets, days after
its former unit Silicon Valley Bank was
taken over by U.S. regulators.
Diamond Sports Group March 14 Diamond Sports Group, which provides
local television broadcasts for nearly
half of NBA, NHL and MLB games, filed for
bankruptcy, caught between expensive
broadcast rights agreements and sports
viewers’ cord-cutting habits.
Avaya Feb. 14 Avaya filed for bankruptcy and secured a
financing of $780 million as it
restructures its business.
Serta Simmons Bedding Jan. 23 Mattress maker Serta Simmons Bedding
filed for bankruptcy in an effort to
eliminate most of its debt.
Party City Holdco Jan. 17 The party supplies retailer filed for
bankruptcy, as persistently high
inflation takes a toll on consumer
spending.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Shounak Dasgupta, Arun Koyyur, Anil D’Silva and Shinjini Ganguli)