Insights

Nearly two years after the COVID-19 pandemic officially ended in May 2023, many companies are still blaming it for their financial struggles. But in 2025, is that still a valid reason?

The numbers tell a different story. In 2024 alone, 346 corporate bankruptcies were filed—more than double those in 2023. And with corporate filings already up 16% from last year, the challenges seem far from over.

So, why are companies still struggling, and more importantly—how can you turn your situation around?

Understanding Corporate Bankruptcy

Chapter 11 Bankruptcy allows businesses to restructure and continue operating, but it should never be the first or only option. Companies need the same adaptive mindset that helped them survive the pandemic. Bankruptcy isn’t inevitable—let’s rethink your options.

The Real Reasons Companies Are Filing for Bankruptcy

While COVID-19 had lasting impacts, today’s corporate bankruptcies stem from deeper, ongoing challenges:

• Economic Pressures – Inflation and rising supply chain costs (tariffs, shipping) are shrinking margins.

• Supply Chain Disruptions – Geopolitical tensions (China-U.S., Ukraine) continue to delay production and raise costs.

• High Debt Loads – Cheap borrowing during COVID has turned into a financial burden due to rising interest rates.

• Shifts in Consumer Behavior – Post-pandemic spending patterns are disrupting retail, real estate, and other sectors.

• Technological Disruption – AI, automation, and e-commerce are leaving outdated businesses behind.

• Poor Leadership – Strategic missteps like failed mergers or over-expansion are taking their toll.

While some factors—like inflation and geopolitical instability—are out of your control, others are within your company’s power to change. Debt management, technological adaptation, and leadership strategy can make or break your company’s survival.

How to Take Control and Avoid Bankruptcy

Instead of filing for bankruptcy, consider these strategies to stabilize and reposition your company for success:

• Debt Restructuring – Renegotiate terms or convert debt to equity to ease financial strain.

• Sell Non-Core Assets – Free up cash by divesting non-essential operations.

• Operational Efficiency – Streamline processes (Lean, Six Sigma) to reduce costs without sacrificing quality.

• Digital Transformation – Invest in technology to improve efficiency and stay competitive.

• Mergers & Acquisitions (M&A) – Merge with or sell to a stronger company to keep operations running.

• Leadership Changes – Bring in turnaround experts to implement a fresh, results-driven strategy.

You’re Not Alone—We Can Help

Your company doesn’t have to navigate this alone. Our Profit & Loss Consulting service helps businesses avoid corporate bankruptcy by stabilizing cash flow and creating a clear path to recovery.

By buying you time and delivering actionable strategies, we help you see blind spots, make tough decisions, and restructure effectively—before it’s too late.

Let’s turn your company around with our People-Powered Profit System™.

If you would like to know more about how to avoid bankruptcy and increase profits, then check out our podcast, Reducing Profit Loss now available, not only on Spotify, but on iHeart Radio, Amazon Music, Castbox, and Radio Public.