Macro Monday: Corporate Bankruptcy and Defaults
March 24, 2025
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As of today, in 2025, there have been 34 mega-bankruptcies, defined as companies with assets of $100 million or more that have filed for bankruptcy. This follows a period of significant mega-bankruptcy activity in 2023 and 2024. The current rate of approximately 12 mega-bankruptcies per month is projected to be roughly 144 for this year.
Retail is among the most affected sectors. Structural changes such as market consolidation and the rise of e-commerce are putting pressure on traditional business models. Despite a recovery in 2023 and 2024, consumer sentiment remains below pre-crisis levels. Consumers remain cautious due to rising unemployment figures and economic uncertainties.
Healthcare, the auto industry, restaurants, and retail will suffer the most. We have discussed below in detail on the challenges faced in the auto industry, and the latest mega bankruptcy in the health care.
This trend warrants attention, as these bankruptcies often result in layoffs, which impact the Challenger Job Cut numbers and contribute to store closures, aligning with Coresight’s store closure numbers.