US business bankruptcy filings are accelerating after a two-year decline, according to a report from S&P Global Market Intelligence.
S&P stated that there were 591 corporate bankruptcy filings in 2023 as of November 30, compared with 603 over the same time frame in 2020, 367 in 2021, and 325 in 2022.
Arizona State University law professor Laura Coordes attributed the 2023 increase to higher borrowing costs and the end of federal stimulus checks, Yahoo Finance reported.
Coordes added that rising interest rates have made it more difficult for businesses with debt to refinance, while stating that higher inflation, particularly energy costs, has weighed on businesses.
Notable names that filed for bankruptcy protection this year included WeWork, Silicon Valley Bank, and Bed Bath & Beyond.
The Consumer Discretionary sector had the most bankruptcy filings with 76, followed by Industrials and Health Care, both of which have seen 75 filings, according to S&P.