- US corporate bankruptcies hit 717 filings through November 2025, up 14% year over year and the highest since 2010.
- Mega bankruptcies (over $1B in assets) rose to 32 in the 12 months ending June 30, 2025, including 17 in H1 2025.
- Industrials and consumer discretionary lead the surge as inflation, high interest rates, tariffs, and regulatory uncertainty squeeze margins and raise costs.
- Distress is uneven despite growth, with small businesses and lower-income consumers more strained while higher-income households remain more resilient.
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Background & Current State
According to data compiled by S&P Global Market Intelligence, by November 2025 there have been 717 bankruptcy filings among US companies—up 14% from the same period in 2024—making this the highest tally since 2010. Industrial firms, especially those exposed to imported inputs and tariffs, along with consumer discretionary companies, have driven the increase. The healthcare sector has also registered notable filings.
Mega Bankruptcies & Large-Firm Distress
‘Mega bankruptcies’—firms with over US$1 billion in assets—numbered 17 in the first half of 2025 alone; 32 in the 12 months ending June 30, up sharply from 24 in the preceding 12 months. These companies commonly cited high inflation, elevated interest rates, regulatory and policy uncertainty (especially in trade and renewable energy/tariffs) among root causes.
Sectoral and Policy Drivers
The industrials sector has the highest number of filings, followed by consumer discretionary and healthcare. Tariff policies under the current administration have raised input costs, disrupted supply chains, and increased competitive pressures on import-reliant industries. Regulatory shifts—particularly in renewable energy incentives—and policy uncertainty intensify risk.
Macroeconomic Context & Consumer Disparity
Economy-wide, growth estimates remain positive, but inflation remains elevated and interest rates are historically high. Consumer sentiment is weak, especially among middle- and lower-income households. Wealth effects through asset value appreciation (stocks, housing) benefit high earners and older cohorts, cushioning their spending. Meanwhile, small businesses face liquidity challenges, rising borrowing costs, and tightening credit conditions.
Strategic Implications for Investors & Stakeholders
- Restructuring and distressed debt investing are becoming more enabling; liability management transactions (LMTs) are rising alongside bankruptcy filings among large firms.
- Sectors heavily exposed to trade, regulation, or dependent on imported inputs will likely see continued strain unless policy stabilizes. Import substitution and domestic supply chains may offer opportunity.
- Financial institutions should anticipate credit losses, particularly in portfolios with exposure to industrial, manufacturing, and retail firms. Mega bankruptcies also raise systemic considerations.
- Policymakers face tension: supporting growth (rate cuts? tariff roll-backs?) versus sustaining inflation control. Uncertainty in policy heightens risk for capital allocation decisions.
Open Questions & Risks
- Will the trend of mega bankruptcies continue beyond H2 2025, or is it peaking?
- How fast will consumer demand erode among lower and middle income households? What policy or market interventions will emerge in response?
- Which sectors might benefit from near-term relief (tariff alliances, regulatory reform)?
- How exposed are financial institutions to cascading failures—e.g. bondholders, regional banks, credit markets?
Supporting Notes
- Through November 2025, 717 US companies filed for bankruptcy, a 14% increase over 2024, the highest number since 2010.
- In first half of 2025, there were 17 mega bankruptcies; for the 12 months ended June 30, 32 mega bankruptcies, up from 24 over the prior year.
- The industrials sector has seen 110 filings through November; consumer discretionary, 85; healthcare, 46.
- Inflation, high interest rates and policy uncertainty cited in mega bankruptcy filings, particularly among industrials and consumer discretionary.
- Record number of liability management transactions in large bankruptcy filings; 117 large firms (assets >$100 million) filed in the 12 months ending mid-2025, versus a historical average of 81.
- Consumer sentiment remains poor, while spending is held up by high-income households; labor market loosening but unemployment remains near 4.4%.