To give perspective on how companies are faring under the Biden Administration, several major, established U.S. brands have decided to close their doors as a direct result of shifting consumer habits away from luxury and discretionary spending spurred by inflation and high interest rates.
More than 80 companies that sell consumer goods have filed for bankruptcy, a jump of 27% from 2023, according to S&P Global Market Intelligence. Family Dollar, Tupperware, Big Lots and Joann Fabric have been among the largest consumer bankruptcies.
In 2023, corporate bankruptcies were at one of the highest totals since 2011, with 591 total. Factors that contributed to the increase in bankruptcies include higher interest rates, regulatory changes, labor shortages, and the end of federal COVID-19 funding.
AIG, Revlon, Rite Aid, Bed, Bath & Beyond, Tuesday Morning, Party City, are some of the more well known companies to go belly up. Drug store chains are also taking a hit. CVS, Walgreens and Rite Aid have announced 945 closures this year combined, according to Coresight, which tracks store closures, openings and bankruptcies in the US and the UK.
Red Lobster, Roti, Tijuana Flats, Buca di Beppo and other restaurant chains have filed for bankruptcy this year and closed hundreds of restaurants. Denny’s announced last week it’s closing 150 restaurants. The 71-year-old restaurant chain said it would close half of its locations by the end of 2024, during a meeting with investors Oct. 22.
Bankruptcy filings cover nearly every sector – health care, consumer goods, IT services, aerospace, restaurants, transportation, energy, real estate, manufacturing and logistics. Here is a list.
As of September 2024, the largest all-time bankruptcy in the United States remained Lehman Brothers. The New York-based investment bank had assets worth $691 billion when it filed for bankruptcy on Sept. 15, 2008 and was one of several companies that spurred the Great Recession. Lehman Brothers remaims in liquidation before the Bankruptcy Court for the Southern District of New York, which continues to oversee payments to the company’s creditors.
A comprehensive article by the U.S. Chamber of Commerce in March 2024 detailed how the Biden administration several times blamed businesses for high prices in the grocery, oil and gas, air travel, and banking sectors.
U.S. Chamber of Commerce President and CEO Suzanne Clark reiterated the vital importance of getting government’s role right in a free enterprise system in an address she gave in January 2024.
“The role of government is to foster the conditions that enable human potential and empower businesses to serve people, solve problems, and strengthen society,” Clark said.
“That means letting markets work and protecting them from government intrusion. Passing pro-growth public policies that are workable and predictable. Setting smart regulations that clearly signal to businesses the rules of the road and exercising the fundamental duties of keeping the government open and running,” she added.
Audrey Carpenter is the Northern Virginia Bureau Chief for All Virginia News. She can be contacted at: audreycarpenter@allvirginia.news
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