BUSINESS US corporate bankruptcies on pace to hit 10-year high amid pandemic: S&P Global

BUSINESS

US corporate bankruptcies on pace to hit 10-year high amid pandemic: S&P Global

Xinhua

14:21, August 12, 2020

WASHINGTON, Aug. 11 (Xinhua) -- US corporate bankruptcies are on pace to reach a 10-year high in 2020, as the US economy plunged into recession amid the COVID-19 pandemic, according to data from S&P Global Market Intelligence.

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File photo: CFP

As of Sunday, a total of 424 US companies have filed for bankruptcies this year, exceeding the number of filings during any comparable period since 2010, S&P Global Market Intelligence reported on Monday.

While bankruptcies have impacted a wide range of sectors amid the pandemic, consumer-focused industries were disproportionately hurt, with more than 100 companies going bankrupt, the report showed.

This included high-profile filings of retailers like Ascena Retail Group Inc., J.Crew Group Inc., J.C. Penney Co. Inc. and Neiman Marcus Group Inc, it added.

Some of the companies seeking bankruptcy protection were already facing issues before the pandemic, it said, adding that the crisis accelerated the pressure.

The rise of corporate bankruptcies came as the Trump administration and congressional lawmakers failed to reach a deal on the next COVID-19 relief bill.

Experts expect to see more bankruptcies, especially in consumer-facing industries, in the coming months as the pandemic continues ravaging the economy.

S&P Global Market Intelligence's analysis includes public companies with at least 2 million US dollars in assets or liabilities at the time of filing, as well as private companies with public debt reaching at least 10 million dollars, the report said.

Overall, 35 companies that have filed for bankruptcies so far reported liabilities of more than 1 billion dollars, it added. Enditem

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