Business Bankruptcies Soar in August as Rising Interest Rates Bite

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Business failures spiked in August as the number of companies seeking court protection from their creditors jumped in response to rising interest rates and pockets of economic headwinds.

The number of commercial bankruptcies increased nearly 17% in August compared to July, according to data company Epiq Bankruptcy. That marks the 13th consecutive month that total bankruptcies, including families and individuals, have logged year-over-year increases, according to the American Bankruptcy Institute.

Even with that qualification, however, the jump in business failures, especially for big firms, is clear, said Ed Flynn, a consultant with ABI who studies bankruptcy statistics.

 

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