Corporate bankruptcies hit a 15-year high in 2025, with at least 717 companies filing for Chapter 7 or 11 through November, a 14% increase from 2024, according to S&P data cited by The Washington Post.

Companies blamed inflation, high interest rates, and President Donald Trump’s trade wars, which raised costs and disrupted supply chains, especially for import-dependent firms.

The hardest-hit sectors were industrials such as manufacturing and transportation, followed by consumer discretionary businesses, with a notable rise in billion-dollar “mega bankruptcies” including Spirit Airlines and solar firm PosiGen.

Economists noted that while inflation has cooled and GDP growth reached 4.3%, many firms are absorbing costs to avoid raising prices, straining cash flow and profitability, The Independent has reported.

Experts warned the surge highlights uneven economic growth, with strength concentrated among wealthier consumers and AI-related investment rather than across all industries.