U.S. sees highest large-company bankruptcies in 15 years with 446 filings

The United States has recorded 446 large company bankruptcy filings in the first seven months of 2025, the highest year-to-date total in 15 years. The tally, compiled by the Kobeissi Letter and S&P Global Market Intelligence, represents a 12% increase above levels seen during the 2020 pandemic year.

Per the Kobeissi Letter, the number of bankruptcies has already surpassed full-year totals for 2021 and 2022, when 405 and 373 firms, respectively, filed for court protection. More data shows that July alone accounted for 71 bankruptcies, up from 66 in June, and the highest single-month figure since July 2020.

It's official:

The US has now seen 446 LARGE bankruptcy filings in 2025, officially +12% ABOVE pandemic levels in 2020.

In July alone, the US saw 71 bankruptcies, marking the highest single-month total since July 2020.

What's happening? Let us explain.

(a thread) pic.twitter.com/xIAbg4v3Lu

— The Kobeissi Letter (@KobeissiLetter) August 20, 2025

The filings tracked include public companies with at least $2 million in debt or assets and private firms with liabilities of $10 million or more. The total also accounts for 371 companies that went under in the first half of the year, with June’s 63 filings officially pushing 2025 bankruptcy levels above those seen during the Covid-19 crisis.

Consumer and industrial companies are the hardest hit

The bankruptcy surge has been most pronounced in the industrials and consumer discretionary sectors. Industrial firms accounted for 70 filings year-to-date, followed by 61 in consumer discretionary. Healthcare came in a distant third with 32 cases, while the energy sector recorded just four.

Several familiar American brands from the 1990s and 2000s are among those that have collapsed in 2025. Retailers such as Forever 21, Joann’s, Party City, and Claire’s, along with pharmacy chain Rite Aid, have all filed for bankruptcy this year.

Analysts point to President Trump’s tariffs, treasury yields, and borrowing costs upticks as the “big three” causes of the insolvencies.

The Trump administration has slapped its trading partners with record-breaking tariffs, even after offering some exemptions and extensions. The effective US tariff rate currently stands at 17.3%, the highest since 1935.

The burden has fallen unevenly on industries and company sizes. Large corporations have been able to negotiate individual tariff deals, such as the recent 15% revenue-sharing agreement with Nvidia and AMD on Chinese sales. Smaller companies, however, have to deal with broad-based levies with little to no room for relief.

Figures from the US Chamber of Commerce estimate that 236,000 small-business importers, defined as companies with fewer than 500 employees, purchased over $868 billion in goods from overseas in 2023. These firms now face approximately $202 billion in annual tariff costs, while also navigating complex regulatory requirements tied to the administration’s measures.

Interest rates compound financial strain

Heading into 2025, American corporations were already succumbing to elevated interest rates. In early 2024, interest expenses as a percentage of net income stood at just 9.1%, the lowest since 1956. But as companies refinance trillions in debt at higher costs, financial stress has surged.

By late 2024, 43% of Russell 2000 companies were unprofitable, the highest share since 2020 and even above the 41% peak during the 2008 financial crisis. Interest expense as a share of total debt among these firms climbed to 7.1%, the most since 2003. The squeeze has left many indebted firms with few options other than bankruptcy.

Meanwhile, American households are riddled with debt and dragging down consumer spending, a key proponent of the US economy. As Cryptopolitan reported earlier today, President Trump has pinned housing problems on Federal Reserve Chair Jerome Powell.

Household debt rose by $185 billion in the second quarter of 2025 to a record $18.39 trillion, up $592 billion from a year earlier. Mortgage balances climbed by $131 billion to reach $12.94 trillion, while credit card debt increased by $27 billion to $1.21 trillion, close to its all-time high. Student loans hit $1.64 trillion, and auto loans reached $1.66 trillion, both setting new records.

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