US Corporate Bankruptcy Filings Surge in June

The U.S. experienced a significant surge in corporate bankruptcy filings in June 2024, marking the highest number in a single month since the start of 2020, with 75 new filings reported. Most of these bankruptcies were in the consumer discretionary sector, including companies like Chicken Soup for the Soul Entertainment Inc., attributing to a total of 346 filings this year. Factors such as high interest rates, supply chain disruptions, and reduced consumer spending have contributed to the challenges faced by struggling businesses. The rise in bankruptcies reflects broader economic concerns and the impacts of Federal Reserve actions, with companies like Fisker and Chicken Soup for the Soul Entertainment facing financial distress.