Corporate bankruptcies are on pace to reach a 10-year high in 2020 amid the coronavirus pandemic and its related economic downturn, S&P Global Market Intelligence reported Tuesday.
As of Aug. 9, a total of 424 companies have filed for bankruptcy, more than any year since 2010. A decade ago, 546 companies had declared bankruptcy as of Aug. 9, followed by another 273 firms.
Experts attribute the boost in bankruptcies to the hardships many companies are facing due to the pandemic and government shutdowns that stalled some business for months.
S&P Global Market Intelligence’s analysis includes public companies with at least $2 million in assets or liabilities at the time of filing or private companies with public debt with at least $10 million.
The data shows that bankruptcies were prevalent in a wide variety of sectors, but consumer-focused companies, in particular, took a hard hit, with more than 100 companies filing.
This includes several retailers that have announced bankruptcies during the coronavirus crisis, including J.Crew Group Inc., Lord & Taylor LLC, J.C. Penney Co. Inc. and Neiman Marcus Group Inc.
In total, 35 companies that have filed for bankruptcy so far reported more than $1 billion in liabilities, according to the S&P Global Market Intelligence analysis.