U.S. Corporate Bankruptcies Rise Amid Economic Pressure

Crypto Rover reports a worrying trend: U.S. corporate bankruptcies have surged to their highest level since the 2020 pandemic. In July alone, 71 companies filed for bankruptcy, up from 63 in June. It’s a wake-up call that businesses are feeling real financial pressure.

Businesses Under Pressure

Life is getting tough for companies. Rising interest rates, high inflation, and supply chain headaches are squeezing profits. Even with a 3% growth in the economy last quarter, many businesses can’t catch a break. Retailers are feeling it first. Big names like Forever 21, Joann’s, Rite Aid, Party City, and Del Monte Foods had no choice but to file for bankrupt. Even brands you thought were solid are struggling.

Some Are Filing Again

It’s getting worse for some. A few companies are refiling for bankruptcy after trying to fix things before. These are called ‘Chapter 22‘ cases. Joann’s and Rite Aid are already in this category. Spirit Airlines could be next.

This shows that earlier fixes didn’t work. For workers and investors, it means uncertainty. Layoffs, shaky finances, and operational struggles are all too common.

Retail and Real Estate Feeling the Heat

Retail stores are especially hard-hit. More people shop online, fewer visit stores. Chains like Claire’s and Big Lots are closing because rent is high and foot traffic is low.

Commercial real estate is also struggling. Loans are more expensive, property values are dropping, and foreclosures are rising. Office and retail spaces are feeling the pinch.

What This Means for the Economy

This isn’t just a business problem—it affects everyone. Credit could tighten. Jobs may be lost. People might spend less because they’re worried about the economy. The stock market can seem stable, but the situation underneath isn’t so strong.

Business owners need to stay cautious. They should control costs and adjust to how customers are shopping. Investors also need to pay attention. There are risks, but there are still chances to make smart moves

Bottom Line

The surge in bankruptcies shows just how tough things are for U.S. businesses. From retail stores to commercial real estate, even big names are struggling. Some will bounce back. Others may keep fighting uphill. The key is simple: stay alert, plan carefully, and be ready for anything.