A surge in bankruptcies has hit US businesses in 2024, with retail, restaurant, and airline sectors experiencing significant losses. Companies like Spirit Airlines and Bed Bath & Beyond are facing financial challenges, leading to closures and restructuring plans.
In 2024, several well-known companies filed for bankruptcy protection in the United States. Some have filed for basic financial restructuring, allowing them to continue operating, while others have announced closures of many physical locations to stave off liquidation. Retail outlets were the hardest hit. However, several restaurant chains were impacted, and one airline.
COMPANIES ARE GOING BANKRUPT AT THE FASTEST PACE SINCE 2020: A ‘HISTORIC SURGE’ The budget airline filed for Chapter 11 bankruptcy protection in November, facing over $1 billion in looming debt payments and accumulating more than $2.5 billion in losses since 2020. Spirit faced challenges such as decreased ridership during the pandemic, competition from the more significant carriers, and most significantly, a blocked merger with JetBlue. Despite the filing, Spirit continues to operate, as customers are allow to book flights and take advantage of frequent flier points. The discount retailer, with more than 1,300 locations, filed for bankruptcy protection in September. With sales in decline and rising debt that reached $3.1 billion, the store initially announced it would close approximately 545 stores. The company later made the announcement that, due to a failed deal with the private equity firm, Nexus Capital, it would close all remaining 963 locations. However, on December 27th, the company announced a deal with Gordon Brothers Retail Partners LLC that would avert the closure of the potential closing of all other locations. There are not yet any details about which locations would remain open and the deal still requires approval from a bankruptcy judge. SPIRIT PREPARES FOR BANKRUPTCY FILING AFTER FAILED FRONTIER TALKS: REPORT The seafood chain, which opened its first location in Lakeland, Florida in 1968, filed for chapter 11 bankruptcy protection in May. The company had significant financial challenges, including higher food costs, higher wages, and rising commercial rent
BANKRUPTCY ECONOMY COMPANIES RETAIL AIRLINES
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