The economy’s still chugging along, but not everyone’s making it to the next station. In fact, prediction markets forecast a whopping 778 corporate bankruptcies by the end of the year.
A combination of inflation, debt overload, and shifting consumer habits is pushing some companies closer to the edge.
A few have already tipped over.
Here’s a look at the businesses sweating through the summer — and the ones that already went under.
Big Lots
The discount chain is teetering. Big Lots has closed and put up for sale hundreds of stores across the country after filing for Chapter 11 last year. Sluggish sales and inflation-strapped shoppers are hammering profits, and bankruptcy is increasingly on the table.
Star Entertainment Group
Australia’s biggest casino operator is betting the house just to stay afloat. A 40% stock plunge and a quarterly cash burn of $100 million have the company scrambling for emergency loans and asset sales to dodge administration.
23andMe
23andMe was in a unique position to trace your ancestral lineage, but it ran into big trouble federal regulators. Then came privacy concerns and a 2023 data breach. It filed for Chapter 11 in March. It has since been bought, but concerns remain.
Wolfspeed
This North Carolina chipmaker borrowed big — $6.4 billion big — to fund new plants. Now, it’s reportedly prepping a Chapter 11 filing to restructure that mountain of debt. The company hasn’t denied it, and all signs point to a summer showdown.
Rite Aid
Rite Aid filed Chapter 11 for the second time in two years this May. They’re shedding assets fast, caught in a death spiral of debt, competition, and rising costs.
Hooters
While Hooters would like you to think its chicken wings were a major draw, but we all know why plenty of people went there. It filed for Chapter 11 in March.
Forever 21
Once a clothing retail heavyweight with hundreds of stores across the U.S., it’s now in financial peril. It first filed for Chapter 11 back in 2019 — this year, they filed again.
Canoo
The EV startup crashed in January, filing for Chapter 7 with less than $50K in assets. That’s not a typo. They’re gone.
Hudson’s Bay Company
Once a Canadian retail giant, Hudson’s Bay filed for creditor protection in March and plans to liquidate most stores, including dozens of Hudson’s Bay and Saks Fifth Avenue locations.
Northvolt
Sweden’s battery darling filed bankruptcy in March after an earlier Chapter 11 attempt in the U.S. The EV transition is brutal, and Northvolt couldn’t keep the lights on.
The Big Picture
With debt piling up and inflation dragging demand, bankruptcies are expected to rise across retail, health care, and hospitality. Not everyone’s going to make it through the summer sun. Keep an eye out — some brands you know might not be around come fall.
