The first quarter of 2023 saw the highest number of corporate bankruptcy filings in the U.S. since 2010, S&P Global Market Intelligence reports. In this period, the number of bankruptcy filings rose from 54 in January to 58 in February and to 71 in March, bringing the total to 183.
SVB Financial Group’s March 17 filing, caused by the collapse of its former subsidiary Silicon Valley Bank after a run on the bank by depositors, was the most noteworthy, shaking up financial markets around the globe. In a press release, the Group said it had $3.3 billion in debt. The bank, now named Silicon Valley Bridge Bank and controlled by the Federal Deposit Insurance Corporation, was not included in the filing, according to its former parent’s press release.
Other significant bankruptcies listed by S&P during the quarter included Diamond Sports Group LLC, Serta Simmons Bedding LLC, Party City Holdco Inc., and Avaya Inc., a business communications service provider. Each reported liabilities of at least $1 billion.
The next biggest bankruptcies filed in March included Si02 Medical Products Inc., a material science company that manufactures primary containers combining plastic and glass, and Loyalty Ventures Inc., a provider of tech-enabled, data-driven consumer loyalty solutions. Both reported liabilities of $500 million to $1 billion.
As a group, companies in the consumer discretionary sector still make up the largest number of bankruptcy filings, S&P noted. The financial sector and healthcare tied for second place with 14 filings each.
Two small real estate companies also entered bankruptcy: WBS Capital Inc. and W LOFTS Development, LLC.