Corporate bankruptcies are extremely common. 18,926 US companies filed for bankruptcy only in 2023, that is, an average of almost 52 per day.
And while many bankruptcies precede the permanent closure of a company, 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.
Generally, most corporate bankruptcies fall into one of two categories. Chapter 7 bankruptcy is often a death sentence for a business. In Chapter 7 proceedings, all of a company's assets are liquidated to pay creditors.
Chapter 11 bankruptcies, on the other hand, allow struggling businesses to restructure and create sustainable debt repayment plans while remaining in business. This is the type of bankruptcy from which a company can emerge successful, like a phoenix from its own ashes.
The following summary includes bankruptcies of both types.
Without further ado, here is TheStreet's updated list of the most notable business bankruptcies of 2024 in reverse chronological order (most recent first). This list is updated periodically as new submissions emerge.
Ambri (May 5)
- Guy: Chapter 11
- Industry: Battery technology
- Passive: $50 million
Ambri, a company involved in the research and development of liquid metal batteries, filed for Chapter 11 bankruptcy on May 5, 2024 due to funding shortfalls. Founded in 2010, the company was partially backed by Bill Gates' venture investment firm, Gates Frontier.
21st Street (May 2)
- Guy: Chapter 11
- Industry: Clothing retail
- Assets: $100 million
- Passive: $500 million
Rue 21 filed for Chapter 11 bankruptcy for the third time on May 2, 2024, closing its approximately 540 retail locations in the U.S., many of which were located in shopping centers or malls. Like many mall-based retailers, the chain had seen a sharp drop in foot traffic as Americans increasingly turned to online stores like amazon and discount retailers like Marshalls and Ross for their clothing purchases. .
Discount Pharmacy Rx (May 1)
- Guy: Chapter 11
- Industry: Pharmacy retail
- Assets: $50,000
- Passive: Between 1 and 10 million dollars
Kentucky-based retail pharmacy chain Rx Discount Pharmacy filed for Chapter 11 bankruptcy on May 1, 2024, after nearly 30 years in business. No specific reason was cited in the filing.
Related: The 5 Most Surprising Chapter 11 Retail Bankruptcies Since 2020
Arnold Transportation Services (April 30)
- Guy: Chapter 7
- Industry: Shipping/logistics
- Assets: $10 million
- Passive: Between 10 and 50 million dollars
Arnold Transportation Services had been around for 92 years when it filed for Chapter 7 bankruptcy in late April 2024, five days after stopping operations and laying off all staff. Rising diesel costs, high interest rates, liquidity problems and significant customer losses contributed to the company's decision. Before closing, the shipping company employed 341 drivers.
Montana Distillery (April 29)
- Guy: Chapter 11
- Industry: Spirit
- Assets: $50,000
- Passive: $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 about 12 varieties of vodka, gin and whiskey, had moved about four years earlier in an attempt to cut costs.
Hoces Market (April 23)
- Guy: Chapter 11
- Industry: Grocery
- Assets: $549,388
- Passive: $52 million
Sickles Market, a high-end family-owned supermarket 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 their liquor license. .
Express (April 22)
- Guy: Chapter 11
- Industry: Clothing retail
- Assets: 1.3 billion dollars
- Passive: 1.2 billion dollars
Express, a mall-based retailer whose store portfolio 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 To keep up with supplier payments and overall liquidity, it said it would close all of its UpWest locations and 95 of its Express retail stores.
Only 99 cents (April 7)
- Guy: Chapter 11
- Industry: Retail discount
- Assets: Between 1 and 10 billion dollars
- Passive: Between 1 and 10 billion dollars
99 Cents Only Stores filed for Chapter 11 bankruptcy on April 7, 2024. Having been in business for more than 40 years, the discount retailer had faced declining demand and smaller margins amid rising inflation. growing. At the time of filing, the brand had more than 10,800 employees, 333 leased properties and 44 owned properties.
Joann (March 18)
- Guy: Chapter 11
- Industry: Craft retail
- Assets: $2.26 billion
- Passive: $2.44 billion
Joann filed for Chapter 11 bankruptcy on March 18, 2024, but promised to keep its more than 800 retail stores open while using new funds to reduce its debt during its restructuring process. Shares of the previously publicly traded company were delisted from the Nasdaq on March 28 and are expected to go private as part of its bankruptcy.
Loading nationwide (March 13)
- Guy: Chapter 11
- Industry: Shipping/logistics
- Assets: Between 1 and 10 million dollars
- Passive: Between 10 and 50 million dollars
Illinois-based transportation company Nationwide Cargo filed for Chapter 11 bankruptcy on March 13, 2024. No reason was provided for the filing, but at the time, the nearly 15-year-old logistics company owned 183 trucks and employed 171 drivers.
<img src="https://www.thestreet.com/.image/c_fit%2Ch_800%2Cw_1200/MjA2MzE5NTI3NDUxOTYwNjYw/the-body-shop-enters-administration-across-uk.jpg”>
The Body shop (March 9)
- Guy: Chapter 7
- Industry: Beauty Retail
- Assets: Between 50 and 100 million dollars
- Passive: Between 10 and 50 million dollars
The US arm of The Body shop filed for Chapter 7 bankruptcy on March 9, 2024, less than a month after the brand's UK arm entered administration (similar to Chapter 11 bankruptcy proceedings ). Once the administration process began, the British branch withheld the US branch's cash, preventing it from meeting its financial obligations. The brand's operations in the United States ceased on March 1, approximately a week before the official presentation.
Forgotten Boardwalk Brewing (January 12)
- Guy: 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, causing the company to give up its facilities.
Related: A veteran fund manager picks his favorite stocks for 2024
