US corporate bankruptcy filings in April rose to their highest levels in a year as companies continued to feel the burden of high interest rates .

S&P Global Market Intelligence recorded a total of 66 new bankruptcy filings in April, up from a revised 61 filings in March. The pace of bankruptcies has accelerated since the start of the year, though the 210 filings recorded over the first four months of 2024 is marginally lower than the 224 recorded over the same time frame in 2023.

Fading hopes of lower interest rates are likely contributing to the increase in filings, as companies that may have held out hope for rate cuts at the beginning of the year come to terms with the reality that they will remain higher for longer.

Notable filings

Clothing retailer Express Inc. filed for bankruptcy April 22, with plans to pursue a sale to WHP Global LLC and several other participants, and to close 95 of its approximately 530 US and Puerto Rico retail stores. The company has received a commitment for $35 million in new financing in addition to $49 million from the Internal Revenue Service through the Coronavirus Aid, Relief, and Economic Security Act.

Communications technology company Casa Systems Inc. filed for bankruptcy April 3, citing a "significant decline in revenue and profits due in large part to industry-wide downward capital investment and procurement trends" in a company statement.

The company, which provides both physical and cloud native IT solutions, said it plans to sell its 5G and radio access network businesses to Lumine Group Inc. and its cable business to Vecima Networks Inc.

Three companies with more than $1 billion in liabilities filed for bankruptcy in April: Express; the parent company of discount retailer 99 Cents Only Stores LLC, Number Holdings Inc.; and ConvergeOne Holdings Inc. This brings total year-to-date filings for the year to 13.

Consumer discretionary, healthcare top list with most filings

Consumer discretionary remained the sector with the most year-to-date bankruptcies, with eight additional filings in April. Healthcare also recorded eight bankruptcies for the month, while the industrials sector added five.

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The three sectors accounted for the majority of bankruptcies filed in 2023 and have continued to see a significantly greater number of filings when compared to all other primary sectors.

Among individual states, companies headquartered in California accounted for over 20% of all filings, with 14 in April. New York recorded eight over the month, followed by six from both Florida and Texas, and three from Arizona. All other states registered fewer than two companies seeking bankruptcy protection in April.

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