US bankruptcies in June hit record high since 2020

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Fisker Ocean, an all-electric car, is seen at a press conference during the first-day media preview of the Los Angeles Auto Show, Los Angeles County, California, the United States, on Nov. 17, 2021. [Photo/Xinhua]

The number of U.S. corporate bankruptcy filings in June hit the highest level in a single month since early 2020, according to estimates from S&P Global Intelligence.

At least 75 companies applied for bankruptcy protection in June, bringing this year's total number to 346, S&P said in a report released on Monday. This has also surpassed half-year figures seen in the past 13 years.

The pace of U.S. corporate bankruptcy accelerated from the first months of this year. In April, bankruptcies started spiking to stand-out levels, the ratings agency reported.

This is rivaled by only the busiest months in 2020, when pandemic chaos drove a number of firms out of business.

Electric-vehicle maker Fisker Group Inc. entered bankruptcy proceedings on June 17, joined in the filing by its parent company Fisker Inc.

The company paused production of its flagship Ocean SUV in March as it sought funding and a potential transaction with a larger automaker.

Last month, Chicken Soup for the Soul Entertainment, which operates Redbox DVD rental kiosks and streaming website Crackle, also filed for bankruptcy.

S&P said high interest rates, supply chain issues and slowing consumer spending have fueled the surge in closures of companies.

Among the companies seeking bankruptcy, the consumer discretionary sector continued to lead others, with 55 total bankruptcy filings this year, and 16 new filings registered in June, according to S&P.

Healthcare and industrials recorded the second-highest bankruptcy totals in 2024, respectively, with 40 filings each.

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