Corporate Bankruptcy Filings Hit Record 8,478 in Third Quarter
Filings rose 21.2% year-over-year as high interest rates and shifting consumer habits take a toll.
The number of companies filing for bankruptcy in Brazil reached a new record in the third quarter. The total count hit 8,478, representing a 21.2% increase compared to the same period last year.
The retail sector leads the list with 1,737 cases, followed by the industrial sector with 1,647 filings. Agriculture and construction also show high numbers, with 1,416 and 1,103 companies facing insolvency, respectively.
Experts note that monetary tightening and high credit costs make it difficult to maintain working capital. Changes in household consumption habits, which now prioritize services over goods, worsen the financial crisis faced by many businesses.
The negative impact is expected to spread throughout the economy because each bankruptcy filing freezes receivables for suppliers and service providers. The risk of a new wave of insolvency remains on the horizon for the coming years, according to industry analysts.
Mato Grosso has the highest proportion of companies in bankruptcy proceedings in the country. In absolute numbers, Paraná led the new filings during the period, followed by São Paulo, Minas Gerais, and Goiás.
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