Corporate bankruptcies are exceedingly common. 18,926 U.S. businesses filed for bankruptcy in 2023 alone — that’s an average of almost 52 per day.
And while many bankruptcies precede a business’s permanent closure, some companies successfully emerge from the process after restructuring and are able to continue doing business — Apple, General Motors, and Marvel Entertainment are just a few high-profile examples.
In general, most corporate bankruptcies fall into one of two categories. Chapter 7 Bankruptcy is typically a death sentence for a business. In Chapter 7 proceedings, all of a business’s assets are liquidated to repay creditors.
Chapter 11 bankruptcies, on the other hand, allow struggling businesses to restructure and create sustainable debt-payment plans while remaining operational. This is the sort of bankruptcy from which a business might emerge successful, like a phoenix from its own ashes.
The following roundup includes bankruptcies of both types.
Without further ado, here is TheStreet’s running list of 2024’s most notable business bankruptcies in reverse chronological order (most recent first). This list is updated periodically as new filings emerge.
ProSomnus (May 7)
- Type: Chapter 11
- Industry: Medical devices
- Assets: $26.3 million
- Liabilities: $52.89 million
ProSomnus, a prominent maker of non-CPAP treatment devices for sleep apnea, filed for Chapter 11 bankruptcy on May 7, 2024. The company's filing is intended to allow it to access new funds from existing debtholders in order to finance continued operations.
Ambri (May 5)
- Type: Chapter 11
- Industry: Battery technology
- Liabilities: $50 million
Ambri, a company involved in researching and developing liquid metal batteries, filed for Chapter 11 bankruptcy on May 5, 2024, due to shortfalls in its funding. Founded in 2010, the company was backed in part by Bill Gates' venture investment firm, Gates Frontier.
Rue 21 (May 2)
- Type: Chapter 11
- Industry: Apparel retail
- Assets: $100 million
- Liabilities: $500 million
Rue 21 filed for Chapter 11 bankruptcy for the third time on May 2, 2024, closing all of its approximately 540 retail locations in the U.S., many of which were located in malls or shopping centers. Like many mall-based retailers, the chain had seen a sharp decline in foot traffic as Americans increasingly turned to online outlets like Amazon and discount retailers like Marshalls and Ross for their apparel purchases.
Rx Discount Pharmacy (May 1)
- Type: Chapter 11
- Industry: Pharmacy retail
- Assets: $50,000
- Liabilities: $1–$10 million
Kentucky-based pharmacy retail chain Rx Discount Pharmacy filed for Chapter 11 bankruptcy on May 1, 2024, after almost 30 years in business. No specific reason was cited in the filing.
Related: The 5 most startling Chapter 11 retailer bankruptcies since 2020
Arnold Transportation Services (Apr. 30)
- Type: Chapter 7
- Industry: Shipping/logistics
- Assets: $10 million
- Liabilities: $10–$50 million
Arnold Transportation Services had been around for 92 years when it filed for Chapter 7 bankruptcy at the end of April 2024, five days after halting operations and laying off all staff. Rising diesel costs, high interest rates, liquidity issues, and major customer losses all contributed to the company’s decision. Before shuttering, the shipping firm employed 341 drivers.
Montana Distillery (Apr. 29)
- Type: Chapter 11
- Industry: Liquor
- Assets: $50,000
- Liabilities: $500,000–$1 million
Montana Distillery filed for Chapter 11 bankruptcy on April 29, 2024, citing rising property taxes and supply costs. The distillery, which produced 12 or so varieties of vodka, gin, and whiskey, had relocated about four years prior in an attempt to cut costs.
Sickles Market (Apr. 23)
- Type: Chapter 11
- Industry: Grocery
- Assets: $549,388
- Liabilities: $52 million
Sickles Market, a high-end, family-owned grocery chain based in New Jersey, filed for Chapter 11 bankruptcy on April 23, 2024. This filing came after some of the chain’s bank accounts were frozen and a lien was placed on its liquor license.
Express (Apr. 22)
- Type: Chapter 11
- Industry: Apparel retail
- Assets: $1.3 billion
- Liabilities: $1.2 billion
Express, a mall-based retailer whose portfolio of stores also includes UpWest and Bonobos, filed for Chapter 11 bankruptcy on April 22, 2024. The company, whose bankruptcy filing came as a result of difficulties keeping up with vendor payments and liquidity in general, said it would close all of its UpWest locations and 95 of its Express retail stores.
99 Cents Only (Apr. 7)
- Type: Chapter 11
- Industry: Discount retail
- Assets: $1–$10 billion
- Liabilities: $1–$10 billion
99 Cents Only Stores filed for Chapter 11 bankruptcy on April 7, 2024. Having been in business for over 40 years, the discount retailer had been facing declining demand and smaller margins amid rising inflation. At the time of the filing, the brand had over 10,800 employees, 333 leased properties, and 44 owned properties.
Joann (Mar. 18)
- Type: Chapter 11
- Industry: Craft retail
- Assets: $2.26 billion
- Liabilities: $2.44 billion
Joann filed for Chapter 11 bankruptcy on March 18, 2024, but vowed to keep its over 800 retail locations open as it uses new funding to reduce its debt during its restructuring process. The formerly publicly traded company’s stock was delisted from the Nasdaq on March 28th, and it is expected to go private as part of its bankruptcy.
Nationwide Cargo (Mar. 13)
- Type: Chapter 11
- Industry: Shipping/logistics
- Assets: $1–$10 million
- Liabilities: $10–$50 million
Illinois-based trucking company Nationwide Cargo filed for Chapter 11 bankruptcy on March 13, 2024. No reason for the filing was provided, but at the time, the almost 15-year-old logistics company owned 183 trucks and employed 171 drivers.
The Body Shop (Mar. 9)
- Type: Chapter 7
- Industry: Beauty retail
- Assets: $50–$100 million
- Liabilities: $10–$50 million
The U.S. arm of The Body Shop filed Chapter 7 Bankruptcy on March 9, 2024, less than a month after the brand’s U.K. arm entered administration (similar to Chapter 11 bankruptcy proceedings). Once the administration process began, the U.K. arm retained the U.S. arm’s cash, preventing it from meeting its financial obligations. The brand’s U.S. operations ceased on March 1, about a week before the official filing.
Forgotten Boardwalk Brewing (Jan. 12)
- Type: Chapter 11
- Industry: Beer
New Jersey-based craft brewery Forgotten Boardwalk filed for Chapter 11 protection on January 12, 2024, after its landlord refused to negotiate a lease extension, resulting in the company relinquishing its facility.
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