BUSINESSES ARE FILING BANKRUPTCY AT THE FASTEST PACE SINCE THE PANDEMIC
BUSINESSES ARE FILING BANKRUPTCY AT THE FASTEST PACE SINCE THE PANDEMIC
Corporate bankruptcies are surging. June saw the highest monthly bankruptcy filings since 2020. Supply chain issues continue; consumers are spending less; and retailers are closing brick and mortar locations. The pandemic stimulus set off a shopping spree that lasted across 2023, but retail spending has gradually spiraled down: in the three months through June, year-to-year sales volumes fell 1.3%. The pandemic chaos and end of the cushion from PPP and EIDL loans are driving businesses out of business. High interest rates put in place by the Federal Reserve are fueling closures and monetary policy is reportedly set to maintain elevated interest rates of 5.25% to 5.5% for a while longer. 2024’s volume of business filings already surpassed levels seen in the past 13 years.
The banks expect a wave of commercial real estate loan default. Businesses are forced to become more creative or face challenging decisions. A supplier or a customer filing bankruptcy affects all aspects of our clients’ business.
If you suspect a customer or supplier or tenant is going to file bankruptcy, please call us to do some pre-bankruptcy planning. Epps & Coulson, LLP maintains a staff of dedicated professionals who carefully monitor federal and state legislation. We are available to help you navigate all your matters to ensure compliance. Contact Dawn Coulson at: dawn@eppscoulson.com for any questions you may have.
Information contained in this Memo is intended for informational and educational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney. It is likely considered advertising. Epps & Coulson, LLP encourages you to call to discuss these matters as they apply to you or your business.
EPPS & COULSON, LLP
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