The number of bankruptcies in the USA in May increased by 48% compared to the same period last year and amounted to 722, which was a record high since May 2011 (see the chart below – ProFinance.ru comment). Compared to April, the number of bankruptcies increased by 28%. In addition to small and medium-sized companies, in May, such retail grandees as J.C. filed for bankruptcy. Penney, Neiman Marcus and J. Crew, as well as the American division of Le Pain Quotidien and drug manufacturer Akorn.
The total number of large companies with obligations in excess of $ 50 million that filed for bankruptcy in the United States in May was 27, which was a record high since 2009 (we are talking about statistics for the May months, see the chart at the beginning of the article – approx. ProFinance. ru), writes Bloomberg. In May of that year, 29 such companies went bankrupt.
The sharp increase in corporate bankruptcies in the United States has prompted some legal experts to ask Congress to increase the number of bankruptcy judges who are starting to drown in paperwork. Dykema Gossett bankruptcy attorney Deborah Williamson told Bloomberg that bankruptcies seem to continue to grow in the future, despite the gradual easing of restrictive measures in some states.
“Hotels will not recover quickly, and office space owners will feel the effects of the pandemic for a very long time,” the expert notes. “The effects of quarantine in the world will not magically disappear as soon as businesses open.”
Another bankruptcy attorney at Faegre Drinker Biddle & Reath, James Conlan, told Bloomberg that his colleagues had a very busy May during which they worked with companies from a range of sectors, including energy, passenger aircraft, passenger aircraft owners, real estate, auto parts suppliers , hotels and retail.
“I think that we will see an extremely large number of large corporate bankruptcies not only in the United States, but throughout the world,” the expert predicts.