US bankruptcies are surging past 2020 pandemic levels

Forever 21 and Joann’s are the latest in a string of well-known retailers forced into bankruptcy, as store closures and shrinking physical footprints continue to reshape the retail landscape.

According to S&P Global data, U.S. corporate bankruptcies spiked this summer to their highest level since 2020. In July alone, 71 public and private companies filed for bankruptcy, up from 63 in June. The wave of filings comes despite robust stock market performance and a second-quarter economic growth rate of 3%.

Analysts point to a mix of pressures — elevated interest rates, ongoing tariff uncertainty, and supply chain challenges — as driving costs higher and straining balance sheets. Canned food maker Del Monte Foods was one of the most notable casualties, entering Chapter 11 with debt estimated between $1 billion and $10 billion. The company cited falling demand, costly inventories, and a crushing debt load as reasons for its collapse.

Though August figures aren’t yet finalized, the trend is already continuing. Claire’s, the fashion accessories retailer, filed for its second Chapter 11 on August 6, blaming weak demand and expensive borrowing costs. It now joins Forever 21, Rite Aid, and Party City — all once-popular chains that have stumbled into bankruptcy and shuttered stores in 2025.