BankruptcyData's Analysis Reveals 35% YTD Increase In Retail Bankruptcies

Jul. 17, 2017 12:16 PM ET1 Comment
George Putnam profile picture
George Putnam
1.29K Followers

Summary

  • The Retail, Services and Finance/Insurance/Real Estate sectors all saw increases in their percentages of overall business filing bankruptcies in Q2 2017 compared to the same period last year.
  • During Q2 2017, Texas overtook New York as the state generating the highest percentage of overall business bankruptcies but YTD 2017 New York remained on top.
  • Companies with sales of $500,000 or less generated 56% of all business bankruptcy filings during Q2 2017 and 61% YTD.
  • Though overall bankruptcy activity is trending upward, public company bankruptcies are down 31% thus far in 2017.

In 2016 we experienced a 26% increase in the number of business bankruptcy filings over 2015, which halted a several-year run of decreasing filing numbers. That upswing continued in 2017 with Q1 2017 business bankruptcy filing figures rising 4% compared to Q4 2016, 1% compared to Q1 2016--but up 25% compared to Q1 2015.

Q2 2017 experienced a 10% increase in business bankruptcy filings over Q1 2017 and a 1% uptick over Q2 2016, but a 35% rise in filings over the 2015's Q2 figures. The 2017 YTD business bankruptcy filing figure increased just 1% compared to the first six months of 2016 but rose 34% compared to the first six months of 2015. The Retail, Services and Finance/Insurance/Real Estate sectors all saw increases in their percentages of overall business filing bankruptcies in Q2 2017 compared to the same period last year. YTD, the Retail sector is up over 4 percentage points (approximately 35%) compared to the same periods in both 2016 and 2015.

During Q2 2017, Texas overtook New York as the state generating the highest percentage of overall business bankruptcies with 19.67% but YTD 2017 New York remained on top by generating 17.07% of overall business bankruptcy filings. Both New York and Texas saw the largest increase in overall business bankruptcy percentage for the first half of 2017 compared to the same period in 2016. Conversely, Missouri and Delaware were the two states that saw the largest decrease in overall business bankruptcy percentage during the first half of 2017 compared to the same period in 2016. The courts in New York-Southern, California-Central, Texas-Southern, Texas-Northern and Delaware have handled the largest percentage of overall business bankruptcies thus far in 2017. Overall, these five districts have overseen more than 35% of all business bankruptcies this year.

Small businesses make up

This article was written by

George Putnam profile picture
1.29K Followers
A graduate of both Harvard Law School and Harvard Business School, George Putnam, III first became involved with distressed securities as a lawyer in the late 1970s. Seeing the inefficient niche that bankruptcies and turnarounds were presented and researched, he founded New Generation Research, Inc. and began publishing The Turnaround Letter in 1986. Since then he has frequently been quoted in Barron's, The Wall Street Journal, New York Times, USA Today and other financial publications. In 1990, he was named investment advisor of the year by USA Today. In addition to his responsibilities at New Generation Research, Inc., Mr. Putnam also serves as a trustee for The Putnam Companies, a mutual fund group with over $100 billion in assets.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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