Corp. BK's at Great Recession levels

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Corporate bankruptcies surged in 2025, climbing to levels not seen since the aftermath of the Great Recession, as companies struggled to absorb inflation, rising interest rates, and the highest tariffs in decades, The Washington Post reports.

“These companies are acutely aware of the affordability crisis confronting the average American,” said Jeffrey Sonnenfeld, a professor at Yale University’s School of Management. “They are doing their best to offset the cost of tariffs and higher interest rates but can only do so much.”

At least 717 companies filed for bankruptcy through November, according to S&P Global Market Intelligence — about 14% more than during the same period in 2024 and the highest total since 2010.

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Notably, the wave included a sharp rise in “mega bankruptcies,” filings by companies with $1 billion or more in assets, underscoring the scale of the financial stress rippling through corporate America.

Businesses in vulnerable sectors found themselves squeezed between rising tariffs and inflation-weary consumers, particularly firms dependent on imported goods.

Many companies cited higher costs tied to inflation and interest rates, along with Trump administration trade policies that disrupted supply chains and pushed up expenses.

The surge in filings marked a shift from prior years. Industrials — including manufacturing, construction, transportation, and logistics firms — saw the most pronounced increase, a sector President Donald Trump has long argued would benefit from aggressive tariff policies. Instead, federal data show manufacturing lost more than 70,000 jobs in the year ending in November.

Consumer-facing companies selling discretionary goods made up the second-largest group of bankruptcies, signaling that households are pulling back on nonessential spending.

Retailers and lifestyle brands, which often top bankruptcy lists, were hit as shoppers prioritized groceries, rent, and utilities over fashion, furniture, and accessories.

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