Corporate Bankruptcies Stay Above Historical Norms Despite Declining from Recent Peak

The 100 filings in 2H 2025-1H 2026 were 22% above the historical annual average.

NEW YORK, Oct. 8, 2026 /PRNewswire/ -- Large corporate bankruptcy filings remained historically elevated between the second half of 2025 and the first half of 2026, even as the filings declined year over year, according to a new report released by Cornerstone Research.

The report, Trends in Large Corporate Bankruptcy and Financial Distress: Midyear 2026 Update, identifies 100 large corporate bankruptcy filings during the 12-month period ending June 30, 2026. These 100 filings were fewer than the 117 filings recorded during the prior 12-month period, but 22% above the annual average of 82 filings from 2005-2025.

"The continued elevated pace of large corporate bankruptcies reflects persistent challenges of the broader economic environment for companies that rely on debt financing," said Matt Osborn, principal at Cornerstone Research and report coauthor. "The data suggest that high interest rates and regulatory uncertainty, along with shifting demand and competitive dynamics within certain sectors such as manufacturing, remain the most frequently cited drives of distress among large bankruptcy filers."

Key Findings

• Mega bankruptcies continue at elevated levels. 28 companies with recorded assets exceeding $1 billion filed for bankruptcy during the period, exceeding the historical average of 23 annual filings.
  
  
• Shifts in consumer preferences are causing financial distress. 73% of Chapter 11 mega bankruptcies cited changing consumer behavior, competitive pressures, or declining demand as contributing factors.
  
  
• Regulatory and policy challenges intensified competitive pressure. 65% of mega bankruptcy filings cited regulatory, legislative, or trade policy pressures, including tariff-related impacts and industry-specific compliance requirements.
  
  
• Texas has overtaken Delaware as the leading bankruptcy venue. The Southern District of Texas accounted for 32% of large corporate bankruptcy filings, surpassing Delaware's 20% share and Texas's historical average of 13%.

Financial Distress Drivers

The report analyzes first-day declarations from 26 Chapter 11 mega bankruptcies and found that multiple operating and macroeconomic pressures continue to affect large companies.

Bankruptcy filers pointed to changing consumer preferences and competitive disruption, citing developments such as cord-cutting, competition from streaming platforms, and post-pandemic demand shifts. They also cited regulatory and policy challenges, including trade tariffs and healthcare funding changes.

High interest rates weighed on companies with floating-rate debt and refinancing needs. Meanwhile, persistent inflation also remained a commonly cited headwind, affecting both input costs and customer purchasing power.

Sector Activity Remains Concentrated

Manufacturing, services, and finance, insurance, and real estate accounted for 64% of all large corporate bankruptcy filings during the period.

Manufacturing companies represented nearly one-third of all mega bankruptcies, with plastics and packaging businesses particularly affected by volatile demand and post-pandemic inventory adjustments. The services sector saw notable distress among healthcare providers, while finance, insurance, and real estate filings remained substantially above historical averages amid ongoing challenges in real estate markets.

About the Report

Trends in Large Corporate Bankruptcy and Financial Distress: Midyear 2026 Update examines bankruptcy filings by companies with assets exceeding $100 million over the 12-month period ending June 30, 2026. The report analyzes filing trends, industry activity, bankruptcy venues, restructuring developments, and key drivers of corporate financial distress.

About Cornerstone Research

Cornerstone Research is at the forefront of economic and financial consulting, delivering the rigorous analytical solutions required to navigate complex disputes. The firm draws from an extensive network of prominent academic and industry experts to support each matter effectively. Pairing a deep understanding of economics and finance with a suite of industry-leading artificial intelligence and machine learning tools, Cornerstone provides clients with a sophisticated, tailored approach. A reputation for innovation, precision, and excellence has defined Cornerstone since 1989. That momentum continues with over 1,000 professionals collaborating across nine offices in the US, UK, and EU.

SOURCE Cornerstone Research