More than 700 US companies went bankrupt in 2025 — a 14% jump from last year

• Industrial sector leads bankruptcy filings with manufacturers and construction firms squeezed by tariffs on steel, components and energy equipment - solar panel tariffs jumped to 20% from less than 5%
• Mega bankruptcies (companies with over $1B in assets) spiked to highest levels since 2020, including At Home and Forever 21
• Transportation and renewable energy sectors particularly vulnerable - Nikola faced $125M SEC penalty while solar companies struggled with $70M monthly in duties

Corporate Bankruptcy Surge Reaches Post-2008 Crisis Levels

US corporate bankruptcies soared to 717 in 2025, marking a 14% increase year-over-year and the highest total since 2010, according to S&P Global Market Intelligence. This surge reflects persistent inflation, elevated interest rates, and tariff pressures crushing company margins.

Key Sectors and Companies:

Industrial firms bore the heaviest impact, with manufacturers, construction, and transportation companies leading bankruptcy filings. Notable casualties included Spirit Airlines, Rite Aid, 23andMe, Hooters, At Home, and Forever 21. The manufacturing sector shed jobs throughout the year ending November, contradicting expectations of tariff-driven domestic production revival.

Market Dynamics:

Cornerstone Research reported mega-bankruptcies (companies with $1B+ assets) hit their highest six-month level since COVID-19. Consumer discretionary retailers, particularly in fashion and home décor, struggled as inflation-weary shoppers prioritized essentials. Companies face a difficult choice between passing costs to customers or absorbing losses to maintain market share.

Tariff Impact:

Import-heavy firms suffered significantly from decade-high tariff rates. Solar panel tariffs jumped to 20% from under 5%, forcing importers to pay nearly $70 million monthly in duties during H2 2025. Combined with reduced federal clean-energy incentives, this created devastating conditions for renewable energy companies.

Specific Examples:

• Electric truck maker Nikola filed for bankruptcy after production struggles and a costly battery recall, plus a $125 million SEC penalty
• Spirit Airlines filed its second bankruptcy in under a year
• Private jet operator Verijet moved to liquidate

The bankruptcy wave encompasses both Chapter 11 reorganizations and Chapter 7 liquidations, signaling varying degrees of financial distress across corporate America.