"A number of companies already have weak balance sheets from the prior three years or so under high inflation and interest rates,"
"Additional uncertainty regarding the regulatory landscape is more recently layered on top of that so companies that are already weakened by general macroeconomic headwinds are also now citing policy uncertainty."
"the highest share of bankruptcy filings across all industries,"
"cited regulatory, legal, and policy landscape as a key financial distress driver."
Between the second half of 2024 and the first half of 2025, 117 companies with assets over $100 million filed for bankruptcy, a 44% increase versus the 20-year average. Mega bankruptcies by firms with over $1 billion in assets grew 33% year-over-year, producing the highest six-month total since early 2020. Continued inflation, high interest rates, falling consumer demand, tariffs, and policy uncertainty drove elevated distress, especially for companies with weakened balance sheets from prior years. Manufacturing accounted for 30% of filings and was particularly affected; among manufacturing mega bankruptcies, 67% identified regulatory, legal, and policy changes as key financial drivers.
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