2026 has seen significant bankruptcy filings. Here's an overview of major cases and what they mean for creditors.
Major Bankruptcies (2026)
Retail Sector
Saks Global, Rite Aid, Joann Fabrics: Large retailers filed or are undergoing restructuring. Suppliers and creditors are seeing modest recovery rates (10–30%).
Specialty Manufacturing
Lycra Company: The advanced fabrics company filed Chapter 11. Recovery is dependent on asset sale proceeds.
Commercial Real Estate
Several major office REITs and CRE developers are in distress, with predicted bankruptcies in H2 2026.
Recovery Rates (2026 Average)
- Secured claims: 75–95% recovery
- Priority unsecured claims: 50–80% recovery
- General unsecured claims: 10–30% recovery
Trends
2026 bankruptcies reflect post-inflation economic stress, high interest rates, and consumer spending pullback. Retail and CRE are particularly affected. Technology bankruptcies (outside crypto) remain limited.
Are bankruptcy rates increasing in 2026?
Yes, personal and business bankruptcies have increased 10–15% compared to 2025, reflecting economic headwinds.