Corporate bankruptcies ticked up in March, with companies in the consumer discretionary category leading the way.
Fifty nine U.S. companies filed for bankruptcy in March, according to data from S&P Global Market Intelligence. That’s up from a revised total of 48 filings in February. Year-to-date, corporate bankruptcies are still below 2023 levels but are higher than the comparable time periods in most of the last ten years.
“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,” read the report.
Bankruptcies in the consumer discretionary sector — which includes footwear and apparel — came in at seven for the month, tying with healthcare for the most bankruptcies since the start of the year. Notably, crafts retailer Joann Inc. filed for bankruptcy March 18. The company, which operates more than 800 stores across the country, said consumer caution and higher operating costs prompted the decision.
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The industrials sector, which saw six bankruptcy filings last month, followed the consumer discretionary sector for most filings in March.
In 2023, U.S. corporate bankruptcy filings hit 642, the highest total since 2010. Consumer discretionary companies had the most filings (82) out of any other sector in 2023.
When it comes to footwear-specific companies, bankruptcies were quiet in March, in line with a trend since the start of the year. In early April, however, the U.S. based entities of slip-resistant footwear company Shoes for Crews filed voluntary petitions for bankruptcy in an effort to undergo a sale of its business. The company said it plans to enter a stalking horse asset purchase agreement to sell the business in a deal that would enable the company to keep operating under a new owner and would allow for the investment into global markets.
