U.S. corporate bankruptcies are climbing at their fastest pace since the aftermath of the Great Recession, as companies struggle to absorb stubborn inflation, high interest rates, and the lingering effects of trade tariffs.
Through November, at least 717 large firms filed for either Chapter 11 reorganization or Chapter 7 liquidation, according to S&P Global Market Intelligence. That tally is about 14% higher than during the same period in 2024 and marks the highest level since 2010.
Consumer-facing companies selling discretionary goods and services—from fashion to home furnishings—represented the second-largest share of filings. Many of these retailers are being squeezed by what Yale School of Management professor Jeffrey Sonnenfeld described to The Washington Post as “the affordability crisis confronting the average American.” He noted that while some firms have been able to pass higher costs on to customers, others have simply folded under the pressure.
The financial toll extends beyond household names. Bankruptcy protections allow companies to reject or transfer leases, halt landlord actions, and in some cases, weaken property valuations across commercial markets.
S&P Global noted that this year’s increases are unusually high compared to recent trends. “If we look at the first 11 months of bankruptcies since 2008, the increases are usually in single digits apart from a few years of double-digit growth, of which 14% is the second-highest year-over-year increase,” the firm told GlobeSt.com. The companies included in S&P’s analysis each had at least $2 million in assets or liabilities at the time of filing, or $10 million for privately held firms.
“Compared to the total number of companies in the U.S., these numbers are not that significant,” S&P added. “But 717 bankruptcies are 13.4% of the bankruptcies that were filed in 2008, so it is a significant number in that regard.”
When smaller companies are factored in, the overall picture becomes more troubling. Data from the U.S. Courts show that business bankruptcies have climbed steadily since the pandemic—rising from 13,160 filings in 2022 to 23,309 in the 12 months ending March 2025. That represents a 131% jump year-over-year.
The increase suggests that landlords and lenders alike may soon find themselves dealing with more tenants and borrowers navigating bankruptcy proceedings, a dynamic that could ripple across the broader commercial real estate market.
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