Commercial Chapter 11 bankruptcy filings rose about 17% year-over-year in August as businesses sought protections during the pandemic-driven economic downturn, according to new data.
“Smaller companies are not experiencing the same market dynamics to access liquidity and will consider seeking protection in a bankruptcy,” said Deirdre O’Connor, managing director of corporate restructuring at Epiq Systems Inc., a research firm that released the data. “We continue to see steady filings in retail, energy, entertainment, along with travel and leisure.”
But the 525 filings in August represent a nearly 18% decline from July, indicating that companies are still finding financing to stay ...