Corporate Bankruptcies Remain Elevated Despite Decline From Recent Peak
According to a report by Cornerstone Research, large corporate bankruptcy filings remained above historical norms between the second half of 2025 and first half of 2026. While down from a recent peak with 100 filings compared to 117 in the prior year period, this number is still 22% higher than the annual average over the past two decades. The report highlights that high interest rates, regulatory uncertainty, and shifting consumer demand are key drivers of financial distress. Mega bankruptcies—those involving companies with assets exceeding $1 billion—were also above historical averages at 28 filings compared to a typical 23 per year. Texas has become the leading bankruptcy venue in the U.S., surpassing Delaware for the first time. The manufacturing, services, and finance sectors accounted for most of these bankruptcies, with particular challenges noted among plastics and packaging firms due to volatile demand post-pandemic.
Topics: corporate_bankruptcy economic_environment regulatory_challenges