Supply Chain Snags Poised to Spur New Wave of Corporate Distress
- Rising costs, delays, hinder firms’ ability to handle debt
- Consumer demand will determine whether defaults are likely
Source: Getty Images
This article is for subscribers only.
Rising helium costs, missing auto parts, and shipping delays are spurring a new wave of financial trouble for companies already saddled with debt amid broader concern that the US economy is on the brink of a downturn.
Companies from Party City Holdco Inc. to Diebold Nixdorf Inc. have reported earnings in recent weeks that were crushed by supply chain pressures and red-hot inflation. One company, Armstrong Flooring Inc., has already been pushed into bankruptcy after higher costs eroded its cash. And auto collision repair company Service King is negotiating with creditors over ways to ease its debt load as it struggles to secure auto parts and get mechanics back to work.