New Jersey Is the New Hot Spot for Big Businesses to Go Broke

Well-known companies in financial trouble are increasingly seeking bankruptcy protection in New Jersey, upending a decades-old norm of firms filing in neighboring jurisdictions Manhattan and Delaware.

Bed Bath & Beyond Inc. and David’s Bridal LLC both sought Chapter 11 protection last month in Newark and Trenton, New Jersey, respectively. A former chemical maker that’s affiliated with Berkshire Hathaway Inc.filed there last week. And Jersey City-based BlockFi Inc. did the same last year, along with a wave of retailers during the pandemic.

Perhaps most notably, Johnson & Johnson’s legal saga over talc lawsuits is also playing out in Trenton, with ...