Small and Medium Businesses Brace for Impact: Corporate Bankruptcies on the Rise in America
Small and Medium Businesses Brace for Impact: Corporate Bankruptcies on the Rise in America
A storm is brewing across the American business landscape, and it's not just the corporate giants feeling the tremors. A wave of bankruptcies reminiscent of the 2008 crisis is spreading its shadow, with small and medium businesses too at risk of being swept up in its wake. Recent reports indicate an alarming surge in bankruptcies, with big names like Vice Media and Bed Bath & Beyond among those struggling. However, this isn't a situation exclusive to large corporations. The dark cloud of bankruptcy looms over businesses of all sizes across the nation.
During the last week, Corporate America witnessed its most severe two-day bankruptcy spree since 2008, as per Bloomberg. This troubling trend doesn't seem to be slowing down. As per data collated by S&P Global, through April, more than 230 companies have filed for bankruptcy in 2023. Analysts note that these companies, both big and small, share common characteristics: a decline in operational quality and unsustainable debt levels. This combination spells out a recipe for bankruptcy in the current market environment.
Retail businesses, including those that cater to a local or regional market, have been hit particularly hard. Changes in consumer buying behavior are driving this trend, causing even well-known retailers like Party City, Tuesday Morning, and David's Bridal to file for bankruptcy.
Unfortunately, the strain on businesses, especially those with weaker balance sheets, may continue into the next year. Businesses, especially small and medium-sized ones, should prepare themselves for these challenging market conditions.
If you are struggling with debt and need to reduce or eliminate debt entirely, at the Law Offices of Omar Zambrano, we can help you today. For a free consultation, call us at 626-338-5505, where a member of our knowledgeable staff will be more than happy to assist you with any questions or needs you may have.