Key Points
- US corporate bankruptcies hit a post-2010 record, with 371 filings in the first half of 2025.
- America’s national debt has soared to $37 trillion, intensifying economic headwinds.
- Major companies, including Wolfspeed Inc. and Sunnova Energy International, filed for bankruptcy in June, each with over $1 billion in liabilities.
- Rising interest rates, stagnant job growth, high inflation, and new tariffs are straining businesses.
- The Federal Reserve’s policies and declining consumer spending are compounding financial pressures.
New Delhi: The US economy is facing mounting challenges in 2025, with President Donald Trump’s administration imposing reciprocal tariffs on trading partners in a bid to bolster domestic industry. However, these measures come amid a backdrop of ballooning national debt now at a staggering $37 trillion and a deteriorating economic environment.
Many American companies, from large multinationals to mid-sized firms, are grappling with severe financial distress. In the first six months of 2025 alone, 371 companies filed for bankruptcy protection the highest number for any first half since 2010. This surge highlights the growing vulnerability across US industries.
Bankruptcy Filings: A Rising Tide
| Year / Period | Bankruptcy Filings |
|---|---|
| First Half 2024 | 335 |
| Second Half 2024 | 353 |
| Full Year 2024 | 688 |
| First Half 2025 | 371 |
| June 2025 (alone) | 63 |
Source: S&P Global Market Intelligence; includes public and private companies with assets/liabilities of at least $2 million/$10 million.
Economic Headwinds: What’s Driving the Crisis?
- High Interest Rates: The Federal Reserve has kept interest rates elevated, making borrowing costlier for businesses already burdened by debt.
- Rising National Debt: With the US debt at $37 trillion, government borrowing is crowding out private investment and raising concerns about fiscal sustainability.
- Tariffs and Trade Tensions: Reciprocal tariffs imposed by the Trump administration have increased input costs and disrupted global supply chains, squeezing profit margins.
- Stagnant Job Market and High Inflation: Weak job growth and persistent inflation have eroded consumer purchasing power, leading to reduced spending and lower corporate revenues.
- Declining Cash Reserves: Companies are finding it harder to maintain healthy cash positions, increasing their vulnerability to economic shocks.
Major Bankruptcies in June 2025
Five major companies filed for bankruptcy protection in June, each with liabilities exceeding $1 billion:
| Company Name | Sector | Key Details |
|---|---|---|
| Wolfspeed Inc. | Semiconductors | Entered restructuring to cut $4.6 billion in debt and reduce annual interest payments by 60%. |
| At Home Group Inc. | Retail/Home Furnishings | Facing mounting debt and declining sales. |
| Marelli Automotive Lighting USA LLC | Automotive Components | Hit by supply chain disruptions and falling demand. |
| Sunnova Energy International Inc. | Solar Energy Services | Cited rising interest rates, regulatory changes, and focus on growth over debt repayment. |
| Mosaic Sustainable Finance Corp. | Green Home Financing | Impacted by economic slowdown and expiration of solar tax credits. |
Company Spotlights
- Wolfspeed Inc.: The semiconductor manufacturer filed for bankruptcy to implement a major restructuring plan, aiming to reduce its debt by $4.6 billion and slash cash interest payments by 60%.
- Sunnova Energy International: The solar energy provider plans to sell assets through bankruptcy proceedings, blaming high rates, regulatory shifts, and a growth-centric strategy for its financial woes.
- Mosaic Sustainable Finance Corp.: Specialized in financing home energy improvements, the company was hit hard by the end of federal solar tax credits and broader economic slowdown.
The Broader Impact
The spike in bankruptcies signals mounting financial stress across the US corporate landscape. Analysts warn that unless economic conditions improve through lower interest rates, revived consumer demand, and more stable trade policies the trend could persist or even worsen in the second half of 2025.
America’s economic challenges in 2025 are multifaceted, with high debt, aggressive tariffs, and weak consumer demand creating a perfect storm for businesses. The record number of bankruptcy filings underscores the urgent need for policy measures that address both immediate financial pressures and long-term economic resilience.
