Tighter credit and higher interest rates are killing the zombies companies
Any idea what that is as a percentage? The Census Bureau tells us that in 2020 there were over six million firms in the US, 2.3 million of them with more than five employees. Using the smaller number:
(459 x 2)/2.31 million = 0.0002
The real question is ‘how many employees/workers were impacted’?
For some of them, none. Bankruptcy often is just a means to reorganize without the debt.
Company to maintain normal operations, workforce
Or, seen another way, a means to roger all the other stakeholders. Frank Lorenzo became notorious for putting his airlines in bankruptcy so he could tear up union contracts and impose wage and benefit cuts.
layoffs in the 20s20s20s20s