Bankruptcy News: Major Companies Facing Crisis
Bankruptcy News isn’t just a recap of headlines; it’s a window into the pulse of a rapidly changing economy. Each week, I summarize the most notable bankruptcy filings, restructuring efforts, and industry shakeups. From legacy retailers shuttering storefronts to regional healthcare providers seeking Chapter 11 relief, this segment unpacks the facts and implications to give you a clear picture of who’s folding, why it matters, and what’s coming next.
Genesis Healthcare Files for Bankruptcy
As we live longer, caring for the elderly is a major issue, especially financially. So the fact that Genesis Healthcare has filed for bankruptcy is a concern, as 15,000 seniors will be without a home or nursing facility.
Genesis Healthcare operates 175 senior living facilities across 17 states. However, a bigger issue is that Genesis filed for bankruptcy because they were spending $8 million a month on personal injury and wrongful death claims.
American Mattress Files for Bankruptcy: Half of Stores Expected to Close
The retail landscape continues to shift, and the latest bankruptcy news comes from American Mattress. The mattress company, which operates close to 100 locations across Florida, Illinois, Indiana, Michigan, and Missouri, has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.
It’s projected, per its bankruptcy filing, that as much as half of its existing stores may be shuttered.
Rite Aid Continues to Close Locations
After Rite Aid filed for bankruptcy, locations continue to be closed, and next on the chopping block is likely all locations in Connecticut, per The Connecticut Insider. The last location in Staten Island is also closing this week.
Shakeup in the Business World: Corporate Bankruptcies Surge
June delivered a jolt to the corporate landscape, with 63 new bankruptcy filings recorded, according to S&P Global Market Intelligence. That brings the year-to-date total to 371, placing 2025 on pace to be the most active year for U.S. corporate bankruptcies in over a decade.
From retail chains to brick-and-mortar businesses, the ripple effects are mounting, underscoring the economic pulse that July 2025 continues to beat (faster now) with volatility.
Territory Tracker: Puerto Rico Bankruptcy Filings Up 19.5% in June
Puerto Rico saw 3,011 bankruptcy filings in the first half of 2025—an 8.4% jump over last year. June alone recorded 509 cases, a 19.5% surge from 2024. Both personal and commercial filings climbed, with Chapter 7 and Chapter 13 leading the spike.
Source: Boletín de Puerto Rico.
Old McDonald Had a Farm: Farm Bankruptcies Spike
New data from University of Arkansas economist Ryan Loy shows that more farms filed for bankruptcy in the first three months of 2025 than during all of 2024. The total? 259 filings, a level not seen since 2021.
Whether it’s rising debt, falling crop prices, or policy whiplash, rural America is heading into summer with less cushion and more debt, and the heat isn’t just coming from the sun, now that the Consumer Financial Protection Bureau (CFPB) has lost 50% of its budget.
Tick Tock. Time’s Up for Michigan’s Clockmaker
Tick Tock, and unfortunately, I’m not referring to the popular app. Howard Miller Co., a Zeeland-based manufacturer known for grandfather clocks and fine furniture, is closing after 99 years, citing tariffs and a struggling housing market. The shutdown affects 200 jobs in Michigan and North Carolina, and includes Hekman Furniture, acquired in 1983. Production will end in 2025, with inventory sales continuing into 2026.
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This blog will be updated regularly as more information becomes available.
Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.
Last updated on July 15, 2025.
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