Corporate bankruptcy filings reached a low watermark for 2023 in November, following months of elevated bankruptcy activity.
S&P Global Market Intelligence recorded a total of 34 bankruptcy filings in November, down from a revised tally of 49 for October. November's total signaled a marked departure from the general trend of elevated monthly filings seen throughout 2023 and was more in line with 2021 and 2022 levels.
Rising interest rates and attendant operational difficulties have fueled the nearly 600 bankruptcy filings since the start of the year. The year-to-date number of filings exceeds all yearly totals over the previous decade, other than 2020.
Notable filings
Anagram Holdings LLC filed for bankruptcy on Nov. 8. The foil balloon manufacturer — a subsidiary of Party City Holdco Inc., which itself filed for bankruptcy in January — has entered into an acquisition agreement with existing lenders, who have also committed to provide $22 million in financing.
WeWork Inc., which provides coworking spaces worldwide, sought bankruptcy protection on Nov. 6. The company plans to reduce its debt by rejecting some of its leases, with locations outside of the US and Canada not affected by the filing.
WeWork was also the only company with over $1 billion in liabilities to seek bankruptcy protection in November, bringing the year-to-date total of such filings to 21.
Sector breakdown
Nearly a third of the month's bankruptcies came from industrials, with 11 filings, bringing the sector's year-to-date total to 75. Consumer discretionary remained at the top of the list with 76 filings, adding four in November, with an additional four added in the healthcare sector.
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Companies operating in those three sectors accounted for the majority of bankruptcies over the past 11 months amid challenging operating conditions. The sector with the next-highest number of filings — financials — trailed all three sectors by more than half.
Leading states
Florida added the greatest number of bankruptcies in November with seven filings, raising the state's total to 594 since 2010. California and Massachusetts each recorded four new bankruptcies for the month.
A total of 33 states had no bankruptcy filings in November, while the remaining states each registered fewer than three for the month.
This Data Dispatch is updated on a regular basis. The last edition was published Nov. 8.
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.
