US corporate bankruptcy filings reached a new high in March as companies continue to battle high interest rates and lingering operational challenges.

S&P Global Market Intelligence recorded 59 new bankruptcy filings in March, up from a revised total of 48 in February. While year-to-date corporate bankruptcies are below the previous year's total by the end of the first quarter, they are above the comparable totals for much of the past decade.

With corporate borrowing under pressure, bankruptcy cases have steadily increased since the beginning of the year and are likely to remain elevated as expectations of near-term rate cuts appear increasingly improbable.

Notable filings

Fabric and crafts retailer JOANN Inc., which operates over 800 store locations across 49 US states, filed for bankruptcy March 18. The company plans to reduce its debt by approximately $505 million with the help of $132 million in new financing and other financial accommodations.

Wood pellet producer Enviva Inc. also sought bankruptcy protection March 12, with expectations to complete the restructuring process before the end of the year. Enviva has entered into two restructuring support agreements, which are anticipated to result in a combined $1 billion debt reduction. The company operates 10 plants in the US and is the world's largest producer of industrial wood pellets.

Most filings come from consumer discretionary, industrials sectors

The consumer discretionary sector recorded the most bankruptcies over the month at seven, tying with the healthcare sector for the most year-to-date bankruptcies. Healthcare added three bankruptcies in March, remaining at the top of the list after a surge in filings in February.

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Six companies in the industrials sector filed for bankruptcy in March, bringing the sector's year-to-date total to 18. The three leading sectors in the first quarter of 2024 also recorded the most bankruptcies by sector in 2023.

Among individual states, California accounted for the greatest number of filings with eight in March, followed by New York with seven, and Texas and Washington with five each.

Besides Florida and Illinois, with four filings each, fewer than two companies sought bankruptcy protection in each of the remaining states.

This Data Dispatch is updated regularly. The last edition was published March 7.

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.