Business bankruptcies in recent quarters have soared to yearslong highs for the U.S. economy.
Federal data showed that in Q2 2024, these fiscal woes were the highest since Q2 2017 for firms seeking to liquidate assets or reorganize their finances.
Business bankruptcies rise in recent quarters
Loans at BMO, including those of transportation customers, were flagged as impaired at increasingly higher levels, and those risks are expected to remain elevated for multiple quarters, the bank reported in August.
In recent months, trucking business bankruptcies from California to Texas have revealed struggling finances that included expenses twice as high as revenue, as well as boom-and-bust revenue.
Firms with 10 or fewer trucks make up over 95% of the industry, according to the American Trucking Associations, and trucking leaders have continued to note issues with overcapacity. Nevertheless, analysts have stressed that demand is a key driver to a turn in the market.
Among Chapter 7 trucking bankruptcies, U.S. Logistics Solutions shuttered operations in June. The case has been working its way through federal bankruptcy court in the Southern District of Texas. In July, the company listed $117.9 million of property for its assets and $21.1 million in liabilities.
