June marked a historic surge in US corporate bankruptcy filings, with the highest number recorded in a single month since at least the start of 2020 and surpassing half-year figures seen in over a decade.

S&P Global Market Intelligence recorded 75 new corporate bankruptcy filings in June. The pace accelerated from the first months of 2024 and is rivaled by only the busiest months in 2020, when the shock from COVID-19 pushed a relatively higher number of companies into bankruptcy. The 346 total filings so far in 2024 is also higher than any comparable figure in the prior 13 years.

High interest rates, supply chain issues and slowing consumer spending continue to weigh on struggling companies.

Notable filings

Electric-vehicle maker Fisker Group Inc. entered bankruptcy proceedings on June 17, joined in the filing shortly after by parent company Fisker Inc. The company announced a pause in production of its flagship Ocean SUV in March as it sought funding and a potential transaction with a larger automaker.

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In a February earnings update, Fisker executives said the automaker's 2023 sales were hit by supplier delays, rising interest rates and finding enough skilled labor to build its vehicles.

Chicken Soup for the Soul Entertainment Inc. also filed for bankruptcy in June. The company, which operates Redbox DVD rental kiosks and streaming website Crackle, filed a Chapter 11 reorganization case on June 28, listing millions in debts to film and TV studios and retailers.

Just one company, Consulate Health Care LLC, sought bankruptcy protection in June with more than $1 billion in total liabilities. A total of 17 billion-dollar bankruptcy cases have begun in 2024 so far.

Sectors

The consumer discretionary sector continued to lead others in 2024, with 55 total bankruptcy filings. The sector recorded 16 new filings during June.

Healthcare and industrials each recorded the second-highest bankruptcy totals in 2024, with 40 filings each. A total of seven healthcare companies sought bankruptcy protection during June, while nine industrials companies entered bankruptcy proceedings.

This Data Dispatch is updated regularly. The last edition was published June 10.

Bankruptcy figures include public companies or private companies with public debt with a minimum of $2 million in assets or liabilities at the time of filing, in addition to private companies with at least $10 million in assets or liabilities. S&P Global Market Intelligence may remove companies from this list if it discovers that their total assets and liabilities do not meet the threshold requirement for inclusion.