Business Bankruptcy Filings Rise in 2009
Not surprisingly, commercial bankruptcies are on the rise for 2009 and continue to surpass previous years. According to the U.S. Court System, business bankruptcies totaled over 55,000, up 63% from the prior 12 months reporting of over 33,000 reported filings.
The rise in filings shows that businesses are still struggling to access working capital and are facing less market demand for products and services. With shrinking margins, restrictive credit, and slower demands for products and services, any slight misstep in the management of a business can cause an immediate filing for bankruptcy protection.
The hardest hit sectors continue to be in real estate and retail and the effects of this has trickled down to other industries including services and manufacturing. Bankruptcy filings are projected to continue well into 2010, especially with less than favorable expectations of consumer spending around the holidays.
Instruments such as credit insurance, factoring, and credit put options can help to reduce the risk associated with commercial trade particularly important in today’s economic environment.
Contact us today for further information.
US Business Bankruptcy Filings Rise In May 2009
 US business bankruptcy filings have nearly doubled from this time last year. According to AACER’s count of commercial bankruptcies there have been over 7,500 commercial bankruptcy filings for the month of May, or 375 business filings per day.If you are business owner tracking these trends, you would agree that this number is staggering! And it isn’t getting any better. |
According to industry experts, it is predicted that there will be many more business bankruptices throughout 2009 and well into 2010. The question is, how many currently operating businesses will continue to put their cash flow - and businesses - in jeopardy without having bankruptcy protection on their receivables? It’s a difficult time for commercial trade and there are continued challenges ahead. Trade credit insurance can be the answer for companies who simply do not want to become the next statistic.
Have a question about our trade risk strategies? Feel free to contact us using the form to the right or call 1-631-585-0960.
Public Company Bankruptcy Filings YTD March 2009
 Many of our readers have asked if we have recent data on the number of publicly held corporate bankruptcies.YTD and we are reporting the following public statistics.As of March 31, 2009, there have been 64 total public company bankruptcies in the United States thus far, twice the amount from 2008, and three times the amount from 2007. |
The combined total pre-petition asset figure for these 64 bankruptcies is a staggering $100,967,544,123! This total asset figure is taken from each company’s most recent 10-K filings. These figures include all public company bankruptcies that have filed under Chapter 7 or Chapter 11.
Have a question about our trade risk strategies? Feel free to contact us using the form to the right or contact us directly at 1-631-585-0960.
