\ud83d\udc49Chapter 11 Bankruptcy Cases have increased dramatically in 2024.<\/p>\n
\u26a0\ufe0f<\/span><\/span>Supply Chain Folks: Stay alerted as we see some critical tendencies around the globe. Earlier this week we took a look at the trend in Germany and today we put a spotlight on the US. Apart from geopolitical issues and supply chain disruptions caused by various reasons, we see alarming news regarding insolvencies\/bankruptcies and Chapter 11 filings. The current trajectory of bankruptcy filings is on a steep climb.<\/p>\n American Bankruptcy Institute<\/p>\n \ud83d\udccc<\/span><\/span>Bankruptcy filings including all chapters<\/strong> totaled 40,267, a 7% increase from the June 2023 total of\u00a037,790.<\/p>\n \ud83d\udccc<\/span><\/span>Commercial chapter 11 filings<\/strong> increased 70 percent to 987 in June 2024 from the 582 filings recorded in June 2023.<\/p>\n \ud83d\udccc<\/span><\/span>This sharp rise can be attributed to the retail sector and prevailing high interest rates that constrict alternatives for businesses. The situation is further compounded by an uptick in related case filings, underscoring the severe financial challenges many companies are grappling with.<\/p>\n \u26a0\ufe0f T<\/span><\/span><\/span>he U.S. Department of Justice projects a substantial increase in bankruptcy filings. Its U.S. Trustee Program has estimated that bankruptcy filings will double over the next three years. This prediction is corroborated by the broader economic data, including escalating corporate bankruptcies, tightening bank loan standards, and the surge in delinquent and consumer debt balances.<\/p>\n A case filed under Chapter 11 of the United States Bankruptcy Code is known as a reorganization bankruptcy. A Chapter 11 bankruptcy allows a company to stay in business and restructure its finances and operations<\/b>. Let’s compare it to Germany\ud83c\udde9\ud83c\uddea<\/p>\n \ud83c\udde9\ud83c\uddea T<\/span>he number of company bankruptcies is once again increasing at a double-digit rate. <\/span>According to the Bavarian (the guys with Lederhosen, Sauerkraut, and Sausages) Statistical Office, the<\/span> number<\/span> of<\/span> business<\/span> insolvency<\/span> proceedings<\/span> rose<\/span> by<\/span> 11.9<\/span> percent<\/span> in<\/span> the<\/span> first<\/span> half<\/span> of<\/span> 2024<\/span> compared<\/span> to<\/span> 2023.<\/span><\/span><\/p>\n \ud83c\udde9\ud83c\uddea T<\/span>he number of corporate insolvencies in Germany rose by almost 30 percent year-on-year in the first six months due to the weak economy.<\/span><\/p>\n It’s time to monitor your INTERNATIONAL value chain partners closely. Use human intelligence and digital monitoring to identify troubled business partners early. @targetP evolving procurement will be happy to assist. We help you to build robust supply chains and effective supply chain risk programs.<\/p>\n","protected":false},"excerpt":{"rendered":" \ud83d\udc49Chapter 11 Bankruptcy Cases have increased dramatically in 2024. \u26a0\ufe0fSupply Chain Folks: Stay alerted as we see some critical tendencies around the globe. Earlier this week we took a look at the trend in Germany and today we put a spotlight on the US. Apart from geopolitical issues and supply chain disruptions caused by various reasons, we see alarming news regarding insolvencies\/bankruptcies and Chapter 11 filings. The current trajectory of bankruptcy filings is on a steep climb. American Bankruptcy Institute \ud83d\udcccBankruptcy filings including all chapters totaled 40,267, a 7% increase from the June 2023 total of\u00a037,790. \ud83d\udcccCommercial chapter 11 filings increased 70 percent to 987 in June 2024 from the 582 filings recorded in June 2023. \ud83d\udcccThis sharp rise can be attributed to the retail sector and prevailing high interest rates that constrict alternatives for businesses. The situation is further compounded by an uptick in related case filings, underscoring the severe financial challenges many companies are grappling with. \u26a0\ufe0f The U.S. Department of Justice projects a substantial increase in bankruptcy filings. Its U.S. Trustee Program has estimated that bankruptcy filings will double over the next three years. This prediction is corroborated by the broader economic data, including escalating corporate bankruptcies, tightening bank loan standards, and the surge in delinquent and consumer debt balances. A case filed under Chapter 11 of the United States Bankruptcy Code is known as a reorganization bankruptcy. A Chapter 11 bankruptcy allows a company to stay in business and restructure its finances and operations. Let’s compare it to Germany\ud83c\udde9\ud83c\uddea \ud83c\udde9\ud83c\uddea The number of company bankruptcies is once again increasing at a double-digit rate. According to the Bavarian (the guys with Lederhosen, Sauerkraut, and Sausages) Statistical Office, the number of business insolvency proceedings rose by 11.9 percent in the first half of 2024 compared to 2023. \ud83c\udde9\ud83c\uddea The number of corporate insolvencies in Germany rose by almost 30 percent year-on-year in the first six months due to the weak economy. It’s time to monitor your INTERNATIONAL value chain partners closely. Use human intelligence and digital monitoring to identify troubled business partners early. @targetP evolving procurement will be happy to assist. We help you to build robust supply chains and effective supply chain risk programs.<\/p>","protected":false},"author":2,"featured_media":4172,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[84,86,90,85,35,91,89,87,88],"class_list":["post-4170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-bankruptcy","tag-chapter-11","tag-inolvenzen","tag-insolvencies","tag-insolvenzmanagement","tag-risiko","tag-supplier-financial-trouble","tag-supplier-risk","tag-supply-risk","entry"],"yoast_head":"\n
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