Media Coverage
Source: Daily Journal
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Meyer
01.27.26
As a result of higher interest rates, tighter credit, and rising labor and goods costs, corporate bankruptcies are at a 15-year high. While filings are expected to rise again in 2026, experts say the situation is not comparable to the Great Recession and remains concentrated in specific industries, particularly retail, hospitality and real estate.
In an interview with Daily Journal, Insolvency & Restructuring practice group leader Andrew Troop said that increases in interest rates and the cost of capital have made financial conditions more challenging for many companies.
“They are feeling stretched with their customers as they try to pass on more and more costs,” he said. “You’ve got real financial pressure on these companies, which they have tried to manage by taking on more debt or adjusting their debt and involving financial engineering to get more runway to see if they can get over the economic challenges they are experiencing.”
“We’re seeing that in mid- to small-size companies that are filing for Chapter 11,” he added.
Troop noted that Pillsbury has doubled its number of bankruptcy attorneys since 2019, adding that “we foresee continued need for our services and expansion of our services.” These services will be across a spectrum of industries, from cross-border cases to health care companies and renewable energy companies.
“I think we will continue to see cases go up,” he said. “I think that you’re already seeing an increase in real estate cases, as commercial landlords and businesses are still struggling with how much space they need post-COVID.”