Home Archives February 2009 Business bankruptcies increase 67% in 2008

Business bankruptcies increase 67% in 2008

| Print |  Email
Sunday, February 01, 2009

STATEWIDE — Business bankruptcies rose 67% in Oregon in 2008, as the growing financial crisis leaves businesses big and small struggling to stay afloat.


The U.S. Bankruptcy Court, District of Oregon recorded 405 commercial filings, up from 242 the year prior. And barely one month into the new year, bankruptcy and insolvency lawyers in Portland are already seeing an influx of filings.

“There are a number of things coming together to create an unprecedented situation,” says Perkins Coie partner Douglas Pahl. “It doesn’t feel like a normal cycle.”

While filings of each business bankruptcy chapter rose last year, the increase in organizations seeking Chapter 11 protection is especially notable. Chapter 11 filings rose to 61, nearly triple the 23 filings recorded last year. While protection under Chapter 11 is not limited to businesses and can include individual filings, the clerk’s office estimates that around 90% of the 61 are business filings.

While the recession has left few industries unscathed, the real estate and retail sectors were especially hard hit in 2008. Real estate developers including Renaissance Homes and Legend Homes were just a few to go into Chapter 11. Other businesses tied closely to the industry also felt the ripple effects. Contractors, engineers, and even some lawyers took a hit when Oregon’s major real estate developers sought bankruptcy protection.

Industry experts predict that the growing swell in retail business insolvencies could turn into a full-on flood in 2009. Post-holiday profit drops paired with a slowdown in consumer spending will continue to challenge many retailers’ financial viability.

Tightened credit markets are proving especially troublesome to business owners on the verge of bankruptcy and those already entrenched in reorganization or liquidation proceedings. Debtors are finding it nearly impossible to refinance, sell or find outside parties interested in acquiring their businesses. “The credit markets are not there to provide an alternative,” says Pahl.    

NICOLE STORMBERG



Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

Measure 91: What Oregon Businesses Need to Know

Contributed Blogs
Wednesday, October 15, 2014
91 thumbBY DIANE BUISMAN

Some common misconceptions employers have about marijuana.


Read more...

100 Best Nonprofits announced

News
Thursday, October 02, 2014

100NP14logo4WebOregon Business magazine has named the sixth annual 100 Best Nonprofits to Work for in Oregon.


Read more...

What I'm Reading

November/December 2014
Wednesday, October 22, 2014

Peter Lizotte at ACME Business Solutions and Roger Busse at Pacific Continental Bank share their favorite reads.


Read more...

Healthcare Perspective

November/December 2014
Wednesday, October 22, 2014
BY KIM MOORE

A conversation with Majd El-Azma, president and CEO of LifeWise Health Plan of Oregon, followed by the Healthcare Powerlist.


Read more...

100 Best Nonprofits to Work for in Oregon [VIDEO]

News
Thursday, October 02, 2014

Screen shot 2014-10-02 at 11.17.21 AMMore than 5,500 employees from 180 organizations throughout the state participated in the 100 Best Nonprofits to Work for in Oregon project.


Read more...

Shuffling the Deck

November/December 2014
Wednesday, October 22, 2014
BY JON BELL

Oregon tribes still bet on casinos.


Read more...

Innovation: a critique

News
Wednesday, October 08, 2014
1008 innovation thumbBY LINDA BAKER | OB EDITOR

A Design Week panel discussion raises questions about how innovative we really are.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS