Bankruptcy filings in Tampa Bay are continuing their upward trend after surpassing pre-pandemic levels earlier this year. The rise reflects a troubling economic climate as businesses struggle to stay afloat.
From January to July, around 12,100 bankruptcies were filed in Tampa Bay, compared to 9,200 during the same period last year and 8,300 in 2022, according to the Middle District of Florida bankruptcy court. This sharp increase signals a deepening financial crisis affecting businesses of all sizes.
The number of Chapter 11 bankruptcies saw a dramatic 85% increase between January and July this year compared to the same period in 2023. Last year, Chapter 11 filings in Florida hit a decade high. Nationally, Chapter 11 cases jumped 40% year-over-year last month, according to the American Bankruptcy Institute. In June, a “historic” surge pushed U.S. corporate bankruptcies to the highest level since early 2020, according to S&P Global Market Intelligence. Factors such as higher-for-longer interest rates, rising costs, and a slowdown in consumer spending have driven the increase in filings during the first half of 2024, S&P reports.
Locally, several prominent Tampa Bay businesses have declared bankruptcy in the past two months.
“This step is a strategic move to realign our operations, reduce debt, and enhance our financial flexibility,” World of Beer President and CEO Paul Avery stated in early August.
In July, Tampa-based furniture retailer W.S. Badcock announced it would lay off its entire workforce and wind down operations as its parent company, Houston-based Conn’s Inc., faces a potential full-chain liquidation under Chapter 11 bankruptcy. Conn’s, which had $1.95 billion in debt at the time of filing, acquired Badcock in December 2023.
Additionally, Tampa’s World of Beer, a popular craft beer bar and restaurant, filed for Chapter 11 bankruptcy earlier this month, attributing the decision to inflation, rising operating costs, and a sluggish return to pre-pandemic dining habits. At its peak, WOB operated numerous locations across the U.S., but has since shuttered most of these, including 14 in the 12 months leading up to the bankruptcy filing.
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