71 US companies went bankrupt in July, highest monthly total since the 2020 pandemic.

71 US companies went bankrupt in July, highest monthly total since the 2020 pandemic.

In a significant development, 71 US companies filed for bankruptcy in July, marking the highest monthly total since the 2020 pandemic [1]. This surge in bankruptcies underscores the ongoing financial strain faced by businesses across various sectors.

The wind turbine blade manufacturer TPI Composites Inc. is one of the notable companies that has filed for Chapter 11 bankruptcy. Oaktree Capital Management, a prominent investor, is set to take over TPI as part of its debt restructuring [1]. This move highlights the challenges faced by the wind industry, which has been grappling with economic and political hurdles.

The pandemic economy has been a complex landscape, with small businesses and large corporations alike facing unprecedented challenges. While some large corporations like TransDigm have sustained profits through cost-cutting measures and government support, many small businesses have struggled to survive [2]. The Paycheck Protection Program (PPP), designed to help small businesses, has faced its share of controversies, including allegations of fraud and misuse of funds [2].

The increasing number of bankruptcies indicates that the economic recovery is still a work in progress. As businesses continue to navigate the post-pandemic landscape, policymakers and financial professionals will need to closely monitor the situation and provide appropriate support to help businesses thrive.

References:
[1] https://news.bloomberglaw.com/bankruptcy-law/wind-blade-maker-tpi-composites-files-for-bankruptcy-in-texas
[2] https://www.propublica.org/series/the-pandemic-economy