Rise in repeat U.S. corporate bankruptcies reported

BankruptcyData has revealed that since 2023, over 60 firms have filed for bankruptcy for a second or third time. Adam Shpeen, a partner in Davis Polk & Wardwell LLP’s restructuring practice, remarked: “For an industry like retail where there’s a secular challenge, it’s not surprising that even using all of the tools of bankruptcy, you could have an outcome where the turnaround doesn’t work out.” The Middle Market notes that “Chapter 11 is particularly useful to large retailers because it can give them the power to renegotiate leases. But even slashing their expenses hasn’t been a cure since inflation started squeezing consumers and business continued to migrate online.”