Biggest Business Bankruptcies Of 2024

2024 has been a challenging year for businesses across the U.S., with major companies filing for bankruptcy due to rising costs, high interest rates, inflation, and shifting consumer habits. Some well-known retailers and corporations couldn’t keep up, leaving employees, customers, and creditors facing uncertainty.

Indiana businesses have also felt the impact of these financial struggles, with closures affecting local economies and jobs. For business owners facing financial distress, understanding what led to these corporate bankruptcies can offer valuable insight. More importantly, knowing your legal options, including Chapter 11 reorganization or Chapter 7 liquidation, can make all the difference in navigating financial hardship. Brock Legal, LLC, led by Zach Brock, helps business owners make informed decisions about bankruptcy, restructuring, and debt relief.

Several big-box retailers, airlines, and private companies have filed for bankruptcy this year. Here are some of the most notable companies going bankrupt in 2024:

Big Lots

The discount retailer struggled to keep up with inflation and rising interest rates, leading to falling sales and multiple store closures nationwide, including in Indiana.

JoAnn Fabrics

The craft and fabric retailer filed for Chapter 11 corporate bankruptcy early in the year, citing supply chain issues, reduced demand, and increased borrowing costs due to higher interest rates.

Red Lobster

The seafood chain faced rising operational costs and changes in consumer habits, forcing it to close locations and file for bankruptcy.

Spirit Airlines

Skyrocketing fuel costs and financial losses led Spirit Airlines to bankruptcy, raising concerns about affordable air travel for budget-conscious travelers.

Party City

A decline in event spending and competition from online retailers put Party City in financial trouble. The company shut down several locations, including some in Indiana.

While national corporations have dominated bankruptcy headlines, Indiana has also experienced its share of business closures, leaving employees, owners, and customers in tough positions.

Scarlet Lane Brewing Co.

Once a staple in Indiana’s craft beer community, the private company closed its McCordsville flagship after a decade in business due to increased operational costs and changing consumer preferences.

American Freight

The furniture and appliance retailer shut down all 328 of its stores nationwide, including seven locations in Indianapolis, Speedway, Bloomington, Lafayette, and Muncie.

Regal UA Circle Centre

The closure of this long-standing Indianapolis movie theater reflected broader challenges in the entertainment industry, including decreased attendance and rising interest rates affecting expansion plans.

Leon Tailoring Co.

After more than 120 years, Leon Tailoring Co. closed its doors as downtown foot traffic declined and retail markets evolved.

For small business owners in Indiana, these closures serve as reminders of the financial pressures many face. However, corporate bankruptcy doesn’t always mean shutting down. With the right legal guidance, it can serve as an opportunity to reorganize, restructure, and move forward with a stronger financial foundation.

Business bankruptcy isn’t just about closing a business—it’s about making the smartest financial decision for your company’s future. Zach Brock and Brock Legal, LLC work with Indiana business owners to explore every option, whether that means restructuring debt under Chapter 11, negotiating settlements, or liquidating assets under Chapter 7.

How Bankruptcy Can Help Your Business

• Debt Restructuring and Negotiation – Businesses struggling with interest rate hikes or reduced cash flow can renegotiate terms with creditors or avoid full bankruptcy through legal settlements.
• Chapter 11 Bankruptcy – Allows companies to stay open under a court-approved reorganization plan while managing debt.
• Chapter 7 Bankruptcy – If keeping the business open is no longer an option, Chapter 7 can help settle debts and liquidate assets efficiently while ensuring legal protections.
• Asset Protection Strategies – Many business owners worry about personal liability in a business bankruptcy. Brock Legal helps protect assets and ensure compliance with Indiana laws.

Filing for business bankruptcy doesn’t always mean the end. Many national brands and private companies that filed for Chapter 11 in 2024 used it to restructure debt, adjust operations, and regain stability. Indiana business owners have similar options.

If your company is struggling with rising interest rates, creditor lawsuits, or mounting debt, acting early can preserve more options for recovery. Delaying action can make the financial situation more difficult to resolve.

Brock Legal, LLC provides strategic legal guidance to business owners facing financial challenges. Contact the firm today to explore your options and start planning a path forward.

Whether you operate a small business or manage a large private company, bankruptcy can be a critical step toward recovery. Brock Legal LLC helps Indiana businesses evaluate their financial position, determine if corporate bankruptcy is the right option, and file in compliance with bankruptcy court requirements.

If you’re considering when to file, here’s what Brock Legal provides:

✔️ A detailed evaluation of your company’s financial situation.

✔️ Guidance on whether Chapter 7 or Chapter 11 is best for your business.

✔️ Representation throughout the bankruptcy filing process.

✔️ A post-bankruptcy recovery strategy to rebuild your financial stability.

Contact us today to schedule a consultation and take the first step toward financial relief.

If your business is facing financial hardship, high interest rates, or mounting debt, don’t wait for creditors to take further action. Schedule a free consultation with Brock Legal LLC today to discuss your options for business or corporate bankruptcy in Indiana.

📞 Call: (317) 203-9098
🌐 Visit: indyfinancelaw.com