U.S. Large-Company Bankruptcies Hit 15-Year High: 446 Filings in 2025 So Far

• Why Are U.S. Bankruptcies Surging in 2025?
• Which Industries Are Getting Crushed?
• How Are Interest Rates Making It Worse?
• What’s the Consumer Debt Connection?
• Could This Trigger a Recession?
• FAQs: Your Bankruptcy Crisis Questions Answered

America’s corporate landscape is cracking under pressure—446 large companies have filed for bankruptcy in just the first seven months of 2025, marking the highest year-to-date total since 2010. That’s a 12% spike compared to 2020’s pandemic-driven collapse. July alone saw 71 filings, the worst single month since COVID’s peak. Industrial and consumer sectors are bleeding the most, with household names like Forever 21 and Rite Aid collapsing. Behind the carnage? A toxic cocktail of Trump-era tariffs, soaring interest rates, and consumer debt hitting $18.4 trillion. Buckle up—we’re breaking down why corporate America is imploding.

Why Are U.S. Bankruptcies Surging in 2025?

The numbers don’t lie: 446 major bankruptcies by August 2025 already surpass full-year totals for 2021 (405) and 2022 (373). According to S&P Global data, July’s 71 filings outpaced June’s 66—a clear acceleration. The BTCC analytics team notes this reflects a perfect storm of macroeconomic headwinds. "Companies that limped through COVID are now getting KO’d by tariffs and debt refinancing at 7%+ rates," one analyst told me. Even Nvidia and AMD, usually untouchable, had to negotiate special 15% tariff deals for Chinese sales. Smaller firms? They’re getting steamrolled.

Which Industries Are Getting Crushed?

Here’s the sector-by-sector bloodbath:

• Industrials: 70 bankruptcies (Think: suppliers getting hammered by metal tariffs)
• Consumer Discretionary: 61 (RIP, Party City and Claire’s)
• Healthcare: 32 (Mostly regional hospital chains)
• Energy: Just 4 (Thanks, $90 oil)

Retail’s collapse is especially brutal—Joann’s fabrics and Rite Aid’s pharmacies couldn’t survive the double whammy of online competition and 17.3% average tariffs on imported goods. That’s the highest U.S. tariff rate since the Smoot-Hawley days of 1935, folks.

How Are Interest Rates Making It Worse?

Let’s talk about the debt trap. In early 2024, interest expenses were just 9.1% of corporate income—the lowest since Eisenhower was president. Fast forward to today: 43% of Russell 2000 firms are losing money, worse than 2008’s financial crisis levels. Why? Because trillions in corporate debt are getting refinanced at 5-7% instead of 2-3%. "It’s like swapping your mortgage from 3% to 6% overnight," quipped a Wall Street trader on CNBC last week. No wonder companies are tapping out.

What’s the Consumer Debt Connection?

Households are drowning too—total debt hit $18.39 trillion in Q2 2025, up $592 billion year-over-year. Credit card balances ($1.21T) and auto loans ($1.66T) are at record highs. When consumers can’t spend, consumer-facing companies collapse. Simple math. President Trump’s recent rant blaming Fed Chair Powell for the housing crisis? That’s just the tip of the iceberg.

Could This Trigger a Recession?

Historically, when corporate bankruptcies spike this fast, a downturn follows within 6-12 months. The BTCC team’s models show similarities to 2007’s pre-crisis patterns. But here’s the wild card: election-year stimulus could delay the pain. Either way, investors should watch high-yield bond spreads—they’re flashing amber alerts.

FAQs: Your Bankruptcy Crisis Questions Answered

How many large companies filed for bankruptcy in July 2025?

July saw 71 major filings—the highest single-month count since July 2020.

Which president implemented the tariffs causing corporate strain?

President Trump’s administration imposed record tariffs, now averaging 17.3%—the highest since 1935.

What’s the total U.S. household debt in 2025?

A staggering $18.39 trillion as of Q2 2025, per Federal Reserve data.