Loading ...Data from S&P Global Market Intelligence shows that 71 major U.S. companies filed for bankruptcy in July 2025. This marks the highest monthly total for large-company filings since July 2020.
Why bankruptcies are rising
Several factors have contributed to the increase in corporate bankruptcies in 2025:
- High interest rates: Following numerous rate hikes by the Federal Reserve in 2022 and 2023, businesses are finding that higher borrowing costs are straining their finances.
- Inflation: Persistent inflation continues to put pressure on corporate bottom lines.
- Tariff uncertainty: Recent tariffs have created an unstable operating environment, especially for companies in the consumer discretionary and industrial sectors.
- Increased competition and debt: Retailers, in particular, have faced stiff competition and have been forced to grapple with rising debt.
Companies affected
While not all 71 companies from July 2025 are public, high-profile bankruptcy filings this year have included:
- 23andMe: The genetics testing company filed for bankruptcy in March 2025.
- Del Monte Foods: The canned food giant filed for Chapter 11 bankruptcy in July, citing issues with excess inventory and rising interest costs.
- Forever 21: The retailer filed for Chapter 11 for the second time in March 2025, with plans to close all its U.S. stores.
- Claire’s: The accessories retailer filed for its second bankruptcy in seven years, citing increased competition and tariff pressures.
The broader context
The rise in bankruptcies is a notable economic indicator for 2025:
- Year-to-date high: As of July 2025, the 446 large-company bankruptcy filings represent the highest total for the first seven months of the year since 2010.
- Surpassing recent years: The 2025 year-to-date total has already exceeded the full-year bankruptcy totals for 2021 and 2022.
- Across various sectors: While concentrated in the industrial and consumer discretionary sectors, the bankruptcies span many parts of the economy, including healthcare