Big Bankruptcies Sweep the U.S. in Fastest Pace Since May 2009
- It’s the busiest month for insolvencies since Great Recession
- Experts say more court filings are likely given weak economy
the closed JC Penney Co. store in Mt. Juliet, Tennessee, U.S., in April.
Photographer: Luke Sharrett/BloombergIn the first few weeks of the pandemic, it was just a trickle: companies like Alaskan airline Ravn Air pushed into bankruptcy as travel came to a halt and markets collapsed. But the financial distress wrought by the shutdowns only deepened, producing what is now a wave of insolvencies washing through America’s corporations.
In May alone, some 27 companies reporting at least $50 million in liabilities sought court protection from creditors -- the highest number since the Great Recession. They range from well-known U.S. mainstays such as J.C. Penney Co. and J. Crew Group Inc. to air carriers Latam Airlines Group SA and Avianca Holdings, their business decimated as travelers stayed put.