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CA-Central Remains Nation’s Busiest U.S. Bankruptcy Court

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BankruptcyData published its free Q3 2017 Business Bankruptcy Filings Report. Packed with nearly 30 pages of analytical charts and graphs, this report reflects quarterly and YTD bankruptcy activity and breaks down the filings by various elements such as industry, sales volume, company size, liabilities, assets, employees, creditors and public and private filings. BankruptcyData notes that the number of business bankruptcy filings in Q3 2017 dropped 13.6% compared to Q2 2017 and 4.4% when compared to Q1 2017 and was the lowest quarterly figure since Q1 2016.

California generated the highest percentage of overall bankruptcies in Q3 2017 with 13.2%, overtaking the Q2 leader: Texas. For Q3 YTD 2017 Texas is the leader with 16% of all bankruptcies coming from the Lone Star state, including some energy giants like Seadrill Limited, Memorial Production Partners and Vanguard Natural Resources.

California-Central remains the country’s busiest bankruptcy court–handling 8.75% of all Q3 2017 filings and 7.88% of all bankruptcies during the first three quarters of 2017. As expected, small businesses make up the lion’s share of business filings with 87% coming from companies with less than five million in sales in Q3 2017. The Service industry generated 24.67% of business bankruptcies in Q3 2017 and 27.69% for Q3 2017 YTD.

This figure has dropped significantly over the last five years: through Q3 2013, the Service industry generated 45.83% of overall bankruptcies. Feeling the squeeze from online retailers like Amazon, Retail filing numbers continue to rise. This industry generated 15.87% of overall bankruptcies in Q3 2017 and 15.77% YTD in 2017.

Bankruptcy activity in the public company sector has been relatively slow: 54 public companies filed in the first nine months of 2017, this compares to 79 for the same period in 2016. Total assets under bankruptcy protection in the first nine months of 2017 was 26% less than the same period in 2016. The Oil & Gas/Energy and the Retail industries generated the most public company bankruptcies: 16 and eight, respectively. Download your free Q3 2017 Business Bankruptcy Filings Report directly to your browser to review all the supporting analytics.

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