U.S. Bankruptcies at 10-Year High As Pandemic Takes Its Toll

As the coronavirus pandemic continues to wreak havoc on the U.S. economy, bankruptcies are on track to hit the highest level in at least 10 years according to figures compiled by S&P Global Market Intelligence.

According to the analysis, which only includes public companies and private companies with public debt and/or assets/liabilities over $2 million or $10 million, respectively, 424 companies announced their bankruptcy through August 9 this year, up 22 percent from the same period last year and the highest level since 2010.

Consumer-focused companies were most affected by the pandemic, with more than 100 of them filing for bankruptcy this year. Due to the lockdown, the already battered retail sector was hit by a wave of bankruptcies that swept away household names such as J.Crew, Ascena Retail and J.C. Penney.