Record-Breaking Corporate Bankruptcies in the US in 2025
Corporate bankruptcies in the United States surged to a 15-year high in 2025. At least 717 companies filed for Chapter 7 or Chapter 11 bankruptcy protection through November, according to data from S&P Global Market Intelligence. This represents a 14% increase from the same period in 2024 and the highest level since the aftermath of the Great Recession in 2010.
The wave of bankruptcies has been propelled by a combination of factors. These include elevated interest rates, persistent inflation, and the impact of sweeping tariffs imposed by the Trump administration. Businesses that are dependent on imports have been particularly hard hit, facing the highest tariff rates in decades.
The industrial sector, which encompasses manufacturing, construction, and transportation, saw the most dramatic increase in filings. Notable casualties include Spirit Airlines, which filed for bankruptcy in August for the second time in less than a year, and solar company PosiGen. The latter blamed changes in renewable energy policy and steep tariffs on imported materials for its downfall.
The first half of 2025 alone witnessed 17 “mega bankruptcies” involving companies with over $1 billion in assets. This is the highest number since the COVID-19 outbreak in 2020.
Despite strong GDP growth of 4.3% in the third quarter, economists note that the economic expansion has been uneven. It has been largely fueled by wealthy consumer spending and corporate AI investments, while many traditional businesses struggle with cost pressures.
Source: Washington Post