The U.S. bankruptcies have soared to levels not seen in years. Through the first seven months of 2025, 446 large companies have gone under. That number is 12% above the 2020 pandemic wave and the highest for this stretch since 2010. July alone saw 71 filings, the highest single-month count since the COVID-19 shock.
Brands that dominated the 1990s have been quietly fading away. Once a staple of shopping malls and suburban strips, names like Forever 21, Joann’s, Rite Aid, Party City, and Claire’s have all gone out of business in 2025.
Three other big names—LifeScan Global, Genesis Healthcare, and Del Monte Foods’ second holding company—all filed in July with more than $1 billion in assets and liabilities.
Higher For Longer Effect
The culprit? Rates that refused to come down. The “higher for longer” era has devoured small caps.
In the Russell 2000, 43% of companies are now unprofitable, the highest share since 2020. Interest expenses as a …