U.S. bankruptcy filings to rise in 2022 after slowing this year – Footwear News
After a significant slowdown in 2021, bankruptcies of U.S. companies are expected to accelerate in 2022, according to data from S&P Global Market Intelligence.
Thirty-two companies filed for bankruptcy in September, compared with 36 that began in August. Since January, there have been 334 corporate bankruptcy filings, the lowest number of bankruptcy filings since 2010.
Despite the 2021 dip, experts predict 2022 will bring another wave of bankruptcies, as federal stimulus and lender money begins to run out. Due to supply chain slowdowns and plant closures, many retail businesses will face inventory shortages during the crucial holiday season, which could make it difficult to meet revenue targets. This year. The impact of the season could spill over into next year and spur a new wave of Virginia bankruptcy laws filings for vulnerable retailers.
Experts predict that small businesses will be at greater risk than large state-owned enterprises, due to their limited access to capital markets.
In 2020, 633 companies filed for bankruptcy, marking the highest number of corporate bankruptcies since the financial crisis of 2010. In retail, companies such as Century 21, Ascena, Francesca’s, Lucky Brand, G-Star Raw, JC Penney, True Religion, and J. Crew were among those who filed for bankruptcy in 2020, in part due to store closings and other challenges related to the coronavirus pandemic.
In 2021, notable retail bankruptcies included Sequential Brands Group, Global Brands USA, and Belk. Overall, the year was marked by a significant wave of store closings. In September, mAccording to a report by Coresight Research, many US retailers have so far announced 4,844 store closings in 2021, up from 2,191 closures last year.