by Michael Snyder, The Economic Collapse Blog:
Businesses are declaring bankruptcy at a much faster rate than they did last year. Thousands upon thousands of once thriving businesses are failing, but this just must be another sign that the economy is “fine”. No matter how bad the numbers get, we are assured that the people running things have everything under control and that the outlook for the future is wonderful. Of course I understand that this is an election year and virtually everyone is trying to put their own unique spin on things. But there is no possible way that you can make numbers like these look good…
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Personal and business bankruptcy filings rose 16.2 percent in the twelve-month period ending June 30, 2024, compared with the previous year.
According to statistics released by the Administrative Office of the U.S. Courts, annual bankruptcy filings totaled 486,613 in the year ending June 2024, compared with 418,724 cases in the previous year.
Business filings rose 40.3 percent, from 15,724 to 22,060 in the year ending June 30, 2024. Non-business bankruptcy filings rose 15.3 percent to 464,553, compared with 403,000 in the previous year.
Read that last line again.
Business bankruptcy filings were up by more than 40 percent in just one year.
But don’t worry.
Everything is “fine”.
Sadly, more businesses continue to file for bankruptcy with each passing day. Earlier this week, I was saddened to learn that even Avon has been forced to file for bankruptcy…
Avon Products filed for Chapter 11 bankruptcy on Monday as the beauty brand looks to address its debt and legal liabilities stemming from lawsuits that alleged its talc-based products were contaminated with cancer-causing substances.
The holding company hasn’t sold Avon products in the U.S. since it divested its North America business in 2016, but remains the holding company for the Avon brand’s operating entities outside the U.S.
Once upon a time, Avon was one of the most iconic brands in the beauty industry.
But now times have changed.
Also on Monday, a chain of gyms that has more than 100 locations in seven states announced that it had filed for bankruptcy…
Gym chain Blink Fitness announced Monday that it filed for Chapter 11 bankruptcy.
The Chapter 11 filing is meant to help the Equinox Group-owned chain “execute an efficient and value-maximizing sale process to optimize its footprint and position the business for long-term success,” according to a news release.
Blink said it will keep its gyms open in the meantime. It has more than 100 locations spread across seven states.
I could give you endless examples if you would like.
LL Flooring is another big name that has decided that it is time to file for bankruptcy…
One of America’s biggest flooring suppliers has filed for bankruptcy – the latest in a long line of retailers this year to face money problems.
LL Flooring will shut 94 of its 442 stores, which are spread out across 47 states, to cut costs and make the company attractive to a buyer.
The retailer, which specializes in hardwood flooring, has faced falling sales over the past year as families cut back on remodelling their homes.
Needless to say, this tsunami of bankruptcies is going to cost a lot of people their jobs.
When Rite Aid filed for bankruptcy protection, they originally indicated that 154 stores would be closing…
After filing for Chapter 11 bankruptcy protection in October, Rite Aid announced it would initially shutter 154 underperforming stores across a dozen states.
Since that time, Rite Aid has announced the closing of an additional 702 locations…
Rite Aid has now shut almost all of the stores it once had in Michigan and Ohio – as it cuts all ties with the two Midwest states.
In total across the US, the drugstore has now closed 856 stores since October 2023 – more than a two-fifths of the roughly 2,000 locations it operated before it fell into bankruptcy.
The latest closures – 74 so far in August- were all in the two Midwest states apart from one each in California and Washington. That is on top of 169 in July, all in Ohio and Michigan.
It is probably just a matter of time before the entire chain goes belly up and everyone that works for Rite Aid loses their jobs.
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