In July 2025, 71 large US companies filed for bankruptcy. That is the highest monthly total since the pandemic lockdown peak in 2020. June saw 66 filings, and May had 64. Source: https://x.com/KobeissiLetter/status/1955262243320541630
The year-to-date total now stands at 446 bankruptcies, already surpassing full-year totals for 2021, which had 405, and 2022 with 373. This is the most bankruptcies seen in 15 years. Source: https://x.com/KobeissiLetter/status/1955262243320541630
The industrial sector leads with 70 filings, followed by consumer discretionary with 61. Retail chains, manufacturers, and service firms dominate the list. Companies like Joann, Burger King, Monster Worldwide, 23andMe, Del Monte, and Merit Street Media all filed in 2025. Source: https://www.thestreet.com/economy/biggest-business-bankruptcies-2025 Source: https://intellizence.com/insights/bankruptcy/leading-companies-filing-for-bankruptcy/
The banking sector is absorbing much of the shock. Credit card delinquencies are rising, and consumer debt hit $17.7 trillion in the second quarter of 2024. Loan demand is softening across credit cards and auto loans. Source: https://www.deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-outlooks/banking-industry-outlook.html
Net interest income is falling while deposit costs remain high. The cost of funds has become the top risk flagged by bank executives. Source: https://www.crnrstone.com/gritty-insights/research/whats-going-on-in-banking-2025
On July 1, the FDIC and Federal Reserve updated resolution plans for eight major banks. These living wills indicate that regulators are preparing for systemic stress but no new legislative tools have been introduced. Source: https://www.fdic.gov/news/press-releases/2025/federal-reserve-and-fdic-release-public-sections-resolution-plans-several
Contradictions are piling up. GDP is still growing but credit stress is rising. Retail foot traffic is up, yet chains are collapsing. Bank optimism is rising while resolution plans are quietly updated. Regulators are watching but not taking strong action.
Bankruptcies are the warning sign. Bank exposure is the risk. Liquidity is the real test. The fuse is lit.