Company bankruptcies are going bigly in 2025. Within the 12 months between the second half of 2024 to the primary half of 2025, 117 corporations with property over $100 million filed for chapter, a 44% improve over the 20-year common, in accordance with a brand new report by consulting agency Cornerstone Analysis.
The soar in “mega bankruptcies”—these filed by corporations with over $1 billion in reported property—was much more stark, rising 33% over the past 12 months alone, marking the very best variety of mega bankruptcies in a six-month interval for the reason that onset of the pandemic in 2020.
Continued inflation, excessive rates of interest, falling client demand, tariffs, and unsure coverage shifts are driving the rise in bankruptcies, particularly for corporations already struggling, in accordance Matt Osborn, a principal at Cornerstone Analysis and co-author of the report.
“A number of companies already have weak balance sheets from the prior three years or so under high inflation and interest rates,” Osborn advised CFO Dive. “Additional uncertainty regarding the regulatory landscape is more recently layered on top of that so companies that are already weakened by general macroeconomic headwinds are also now citing policy uncertainty.”
Manufacturing was hit significantly laborious by coverage adjustments in Washington not too long ago, with “the highest share of bankruptcy filings across all industries,” with 30% of all filings in accordance with the report. Among the many producers submitting mega bankruptcies, 67% “cited regulatory, legal, and policy landscape as a key financial distress driver.”
This report was initially revealed by CFO Brew.
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