Business Bankruptcy Numbers Continue Upward Trend

Nov. 28, 2007
A 7% increase over the second quarter of 2007.

In the third quarter of 2007, 7,167 businesses declared bankruptcy in the third quarter of 2007, bringing the total for 2007 to 20,152 according to the U.S. Bankruptcy Courts.

The third-quarter figure shows a series of upward trends, including:

  • A 7% increase over the second quarter of 2007
  • A 35% year-over-year increase from the second quarter of 2006
  • A 45% increase for the first half of 2007 in comparison to the first half of 2006
  • The number of business bankruptcies through three quarters of 2007 (20,152) now eclipses the total number for 2006 (19,695)

Accounts receivable insurer Euler Hermes ACI is forecasting a return to 30,000 business bankruptcies in 2007 -- a 51% increase over 2006. This follows a spectacular, but one-off, reduction in business failures last year, when the number of corporate insolvencies dropped by 50% due to a 2005 change in U.S. bankruptcy legislation.

"Businesses today are facing serious headwinds from a slowing economy and an increase in the cost of doing business," said Euler Hermes ACI chief economist Daniel C. North, who has said that the three most serious economic issues remain the effects of increased energy, raw material, and labor costs; the effects of monetary policy tightening by the Federal Reserve in 2004-2006; and the "decimated" housing market and its effects on consumers and businesses.

Popular Sponsored Recommendations

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Smarter Savings for Manufacturers - Guide

Sept. 11, 2023
Boost your manufacturing sales and revenue while reducing costs. Learn how one platform can help your business be more agile and productive in today's market.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!