New Generation Research announced that its Q2 2015 Business Bankruptcy Filing Report is now available. The data contained there in indicates that the downward spiral of business bankruptcy filings seems to have stemmed, at least for now, as the monthly quantity of business bankruptcies has plateaued over the last six months at a level that is 19.2% lower than the first six months of last year and one third the bankruptcy levels through the same period in 2010.
The number of June bankruptcies was down slightly compared to March, April and May; but the June figure was consistent with the average monthly filing count over the last six months. The chart below reflects the downward bankruptcy spiral since 2010: The number of business bankruptcies in the first six months of 2015 is 68% lower than the first six months of 2010.
% Decline from Q2 14 to Q2 15
|% Decline from Q2 13 to Q2 14||% Decline from Q2 12 to Q2 13||% Decline from Q2 11 to Q2 12||% Decline from Q2 10 to Q2 11||% Decline from Q2 09 to Q2 10|
After several years that have been quite slow in the public-company bankruptcy sector, which make up a very small percentage of the overall filing number, we are seeing signs of what appears to be a sustained pick up of public-company bankruptcies. The number of chapter 11 filings by public companies hit its highest-midyear level since 2011, and the total assets of the companies going into bankruptcy are at their highest levels since 2009 (excluding financial companies, which tend to have very large asset numbers, and the mega-filing of Energy Future Holdings last year). The number of non-financial Chapter 11’s with assets above $1 billion so far in 2015—ten—is the highest at this point in the year since 2009.
As has been the case historically, small businesses continue to make up the largest percentage of business bankruptcies but the percentage is trending downward: 76% of Q1 & Q2 2015 business bankruptcies were filed by companies with $2.5 million or less in gross sales revenue which compares to 87% and 81% for the same periods in 2014 and 2013 respectively. Similarly, 80% of all business that filed for bankruptcy in the first half of 2015 employed 20 or less people.
The full summary and detailed data analysis are available for immediate download in this free bankruptcy report.