A toxic combination of COVID-19 restrictions, major shipping disruptions, and ever-rising political tensions has simply proven too much for some of America's most recognizable big-name brands.

The result? Corporate bankruptcies have reached their highest level since the Great Recession in 2010, according to S&P Global Market Intelligence. In fact, a staggering 286 US companies have filed for bankruptcy so far this year. 

Read on to discover why some of America's biggest businesses have fallen on hard times, and find out whether they're likely to survive. 

Most of the companies on this list are beloved brands that many Americans will be sorry to see disappear – although that can't be said for the disgraced pharmaceutical firm Purdue Pharma.

Allegedly a major profiteer of America's opioid crisis, Purdue Pharma – which made and sold the prescription painkiller Oxycontin – filed for bankruptcy after being served with more than 2,600 lawsuits that were seeking billions of dollars in damages.

Four years on, Purdue Pharma is still in bankruptcy proceedings. Last month it was ruled that the company can shield its owners – members of the formerly super-rich Sackler family – from opioid-related lawsuits in exchange for a $6 billion contribution to a trust that will be used to fight the effects of the opioid crisis. 

A New York judge has also recently agreed that the company can sell its consumer health business, Avrio Health, to a subsidiary of Arcadia Consumer Healthcare for $397 million.

The ruling will enable Purdue Pharma to start liquidating its assets, while awaiting a final judgement on a $10 billion bankruptcy plan that will see the company's remaining assets transferred to the trust. 

Lacking an online platform to sell its discount household goods, stay-at-home orders created an "insurmountable financial hurdle" for Tuesday Morning during the COVID-19 pandemic.

In May 2020, the company announced that 230 of its 700 stores would close permanently, with the company hoping to use the bankruptcy process to renegotiate leases for the remaining locations.

While the Dallas-based brand did initially hint it would seek a buyer for its remaining assets, the sale never materialized, and January 2021 saw the company emerge from Chapter 11 under the same ownership.

It wasn't a recipe for success. According to the Dallas Morning News, Tuesday Morning was on the brink of bankruptcy for a second time last year. It was later sold to Retail Ecommerce in a deal that injected $35 million into the struggling business after it was finalized on 19 September 2022. 

However, this hasn't been enough. CNN reported on 15 February this year that the brand had filed for bankruptcy yet again, with the organization stating it needs to tackle its "exceedingly burdensome debt."

Last month, it was announced that courts have approved the $32 million sale of Tuesday Morning to retail investment solutions company Hilco Merchant Resources, a purchase that will see the homeware store officially go out of business.

Scandinavian Airlines (SAS) filed for bankruptcy protection in the US on 5 July last year after a combination of factors such as the pandemic and subsequent industrial action from pilots hit the company's profits hard. 

In a statement, SAS said that pilot strikes were "estimated to lead to the cancellation of approximately 50% of all scheduled SAS flights." Russia's invasion of Ukraine also impacted SAS, with some of the airline's key flight routes becoming unviable. 

After a turbulent few years, the situation is looking up for SAS. Last September, US courts approved a $700 million credit agreement as part of the airline's bankruptcy plan, and SAS has introduced a number of new measures, including ramping up its flights to Shanghai and renegotiating contracts with aircraft lessors.

In a statement earlier this year, the company announced that it expects to emerge from bankruptcy later in 2023 and return to profitability in 2024.

Multinational cinema chain Cineworld Group, which owns the Regal chain of cinemas in the US, filed for Chapter 11 bankruptcy protection in America on 7 September last year.

Although movie theater ticket sales were reportedly strong last summer, Cineworld has struggled to bounce back from the debts it amassed by buying Regal and the closures during the pandemic.

The brand's theaters have remained open during its bankruptcy and the chain was granted immediate access to "up to approximately $785 million of an approximate $1.94 billion debtor-in-possession financing facility" by the United States Bankruptcy Court for the Southern District of Texas.

Along with Cineworld's cash reserves, it was expected this would provide enough liquidity for the chain to pay its debts. 

So, nine months on, where is Cineworld now? Although the business is still indebted and has failed to find a suitable buyer, there's good news on the horizon. After striking a deal with lenders, the theater chain has just announced that it expects to exit bankruptcy proceedings next month. This will allow it to embark on a restructuring plan that will see all its shareholders wiped out in a bid to reorganize its debt.

Party City has been battling dwindling sales for years as a result of increasing competition from online retailers and stores such as Target. These issues were further compounded by the COVID-19 pandemic and ensuing product shortages. 

A shortage of helium was particularly bad news for Party City's balloon business, causing profits to fall and confidence in the retailer to deflate...

Is the party over for America's largest celebration supplies store?

After announcing its bankruptcy in January 2023, Party City said that it would auction off a select number of its stores while keeping the remaining locations open thanks to a $150 million financing boon.

The chain has reportedly reached an agreement with its debt holders to reduce its $1.7 billion worth of debt, so watch this space...

One-in-four American brides buy their wedding gown from David's Bridal – but the chain's astounding popularity hasn't been enough to protect it from Chapter 11. 

After laying off around 90% of its workforce, David's Bridal filed for bankruptcy in April for the second time in five years, having previously gone bankrupt in 2018. 

In a statement, CEO James Marcum wrote: "Our business continues to be challenged by the post-COVID environment and uncertain economic conditions, leading us to take this step to identify a buyer who can continue to operate our business going forward." 

The company also claimed that shifting consumer habits, which include brides increasingly purchasing second-hand dresses, have harmed its post-pandemic recovery.

David's Bridal will close various locations throughout the summer and plans to keep its remaining branches open during its bankruptcy proceedings.

The brand is hopeful it can still find a buyer; if that doesn't happen, CNN reports that it might be forced to liquidate and close all its stores.

Less than a week after David's Bridal, homeware store Bed Bath & Beyond also filed for Chapter 11 in April 2023. The ultimate "will they, won't they?" story, the homeware retailer had been at the center of bankruptcy rumors for over a year.

According to Forbes, one of the main reasons for the retailer's downfall was a "self-imposed disaster" in 2019 when the new CEO "heedlessly forced [a] private-label strategy" that saw customers defect to other stores.

Unlike the other companies on this list, Bed Bath & Beyond has no intention of emerging from bankruptcy and is currently in the process of winding down its physical operations. It's undeniably a sad ending for a business that's been in America's malls for over 50 years.

At a bankruptcy auction last week, online retailer Overstock.com made a successful bid of $21.5 million to buy the chain's intellectual property and other assets, likely with a view to keeping the brand alive online. That's a pittance for a company that just four years ago had over 1,500 stores in all 50 American states. The assets of separate division buybuy BABY is being auctioned off this week.

When you consider that The New York Times described Vice as a "decayed digital colossus" in May, the media group's bankruptcy perhaps isn't a complete surprise to everyone. 

In fact, the company has long been plagued with problems, including missing its revenue target by more than $100 million in 2017. With profits plateauing and allegations of management misconduct, it was clear that Vice's peak had passed, and in May the business filed for bankruptcy to its sale to a group of lenders.

According to Reuters, Vice Media listed its assets and liabilities for between $500 million and $1 billion. But a deal has now been struck with a consortium of lenders including Fortress Investment Group, Soros Fund Management, and Monroe Capital to acquire the media group's assets and liabilities for just $350 million – a "steep discount," said Thomas Hayes, the chairman at investment company Great Hill Capital. 

Hayes added: "We will find out whether [Vice] can become viable with a much slimmer capital structure coming out of bankruptcy."

The Chicago-based company behind kitchen brands such as Pyrex, Snapware, and Instant Pot filed for bankruptcy this month, citing a post-pandemic slump in sales. 

While stay-at-home orders meant Americans bought kitchen appliances in near-record numbers, the trend hasn't continued post-pandemic – and although Instant Brands says its products can be found in 90% of US homes, its cash reserves are now running low.

In a statement, Instant Brands said that the company has secured $132.5 million in debtor-in-possession financing from existing lenders. This will enable it to keep operations running as normal while it attempts to emerge from bankruptcy proceedings.

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