So far, more than 230 companies have filed for bankruptcy in 2023, according to the latest data from S&P Global, which tallied the figures through April. James Gellert, CEO of Rapid Ratings International, a company that evaluates the financial health of public and private companies, said many of these troubled companies have similar traits. “The big themes are that they have degraded in operational quality and have debt that has been unsustainable,” he said.
“Consumers will find that some brands are either unable to maintain their businesses or are having to change their business models,” Gellert said. He estimates that consumer-facing companies with strong customer loyalty will fare better than others. The Fed’s impact The Federal Reserve’s rate-hiking campaign has played a role in the bankruptcy uptick.