Corporate financial stress in the United States intensified sharply in 2025, with 717 large companies filing for bankruptcy through November, the highest level since the aftermath of the 2010 Great Recession. Data from S&P Global Market Intelligence shows filings rose 14% year-on-year, highlighting mounting pressure across multiple sectors of the economy.
Economists attribute the spike to a convergence of adverse forces. Aggressive trade policies and tariffs significantly raised input costs for import-dependent industries such as manufacturing and construction. At the same time, persistently high interest rates made refinancing difficult, pushing heavily leveraged “zombie companies” into insolvency as access to cheap credit dried up.
Consumer behavior also shifted under inflationary pressure. Households increasingly prioritized essentials like food and housing, cutting back on discretionary spending. This trend hit retailers, fashion labels, and home-furnishing companies particularly hard. Compounding these challenges, ongoing supply-chain disruptions—driven by geopolitical tensions and rerouted trade flows—continued to inflate logistics and operating costs.
Notably, the crisis extended beyond small businesses. The first half of 2025 recorded 17 or more “mega-bankruptcies”involving companies with over $1 billion in assets or liabilities, the highest since 2020. Mid-sized private firms, carrying $10 million to $100 million in debt, accounted for the largest share of filings, squeezed by limited cash reserves and reduced flexibility.
Geographically, filings clustered in major economic hubs. California’s Central District led due to its concentration of retail and consumer-tech firms, while Delaware and Texas remained preferred venues for Chapter 11 cases. Industrial states such as Pennsylvania and Ohio also saw elevated filings, reflecting manufacturing job losses exceeding 70,000 nationwide.
Although the numbers are stark, about 60–65% of companies pursued Chapter 11 restructuring rather than liquidation, signaling attempts to survive in a higher-cost, slower-growth environment.
