Davis Polk partner Adam Shpeen was quoted in Bloomberg discussing the recent increase in the number of repeat corporate bankruptcies. According to the article, more than 60 companies have filed for bankruptcy for a second or third time over the past two years.

“For an industry like retail where there’s a secular challenge, it’s not surprising that even using all of the tools of bankruptcy, you could have an outcome where the turnaround doesn’t work out,” Adam said.

Speaking about companies that strike out-of-court agreements with lenders to slash debt without ceding control of the business, as happens in bankruptcy, Adam noted, “In some respects, that’s the functional equivalent of a repeat bankruptcy.”

“Repeat Corporate Bankruptcies in US Hit Fastest Pace Since 2020,” Bloomberg (January 14, 2025) (subscription required)

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