In the first quarter of 2024, more Pittsburgh-area businesses filed for bankruptcy than in any quarter of the previous year. The increase in bankruptcy filings may be a result of the nearing end of a national measure designed to aid small businesses during the pandemic. This could potentially lead to a rise in bankruptcy filings across the country as companies continue to struggle with high interest rates.
According to data from Epiq Bankruptcy and the American Bankruptcy Institute, there were 41 commercial bankruptcy filings in the Western District of Pennsylvania in the first three months of 2024. Of these filings, 26 were Chapter 7, or liquidation, and 11 were Chapter 11, or restructuring. This represents a nearly 58% increase from the 26 filings during the first quarter of 2023. Last year, no quarter saw more than 36 bankruptcy filings, with a total of 129 filings in the region for the entire year – setting a record low for business bankruptcies.
As businesses face growing financial challenges due to ongoing effects of the pandemic and high interest rates, regulators are hesitant to cut interest rates. These factors coupled with nearing end of pandemic relief measures could contribute to potential rise in bankruptcy filings in coming months. To stay informed on this topic, visit Pittsburgh Business Times website and download free WPXI News app for breaking news alerts and follow Channel 11 News on Facebook and Twitter.
