Home Back Issues February 2009 Business bankruptcies increase 67% in 2008

Business bankruptcies increase 67% in 2008

| Print |  Email
Archives - February 2009
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

Revolution in print, pixels and passion

News
Tuesday, March 11, 2014
RyanFrankNewsBY MARK BLAINE | OB BLOGGER

The publisher of the Emerald Media Group moves on, leaving a cutting edge media group that depends on business acumen for its survival.


Read more...

The 2014 List: The Top 33 Large Companies to Work, For in Oregon

March 2014
Thursday, February 27, 2014

100best14logoWebOur 100 Best Companies project turned 21 this year, so pop open the Champagne. Our latest survey gives us plenty to cheer.

 


Read more...

The solution to youth unemployment

News
Thursday, February 27, 2014
02.27.14 Thumbnail TeenworkBY ERIC FRUITS

Because they have little chance of working for someone else, today’s teens need to be entrepreneurs. But, first, we must teach our teens that entrepreneurship starts small.


Read more...

Rapid ascent

March 2014
Tuesday, February 25, 2014
IMG 4255-2BY AMY MILSHTEIN

Kelly Dachtler, president of The Clymb, redefines outdoor retail.


Read more...

Spreading the wealth

March 2014
Tuesday, February 25, 2014
HiResBY PAIGE PARKER

A money management firm broadens its reach. 


Read more...

The 2014 List: The Top 34 Medium Companies to Work, For in Oregon

March 2014
Thursday, February 27, 2014

100best14logoWebOur 100 Best Companies project turned 21 this year, so pop open the Champagne. Our latest survey gives us plenty to cheer.

 


Read more...

100 Best Companies to Work for in Oregon [VIDEO]

News
Monday, March 03, 2014

Screen shot 2014-03-03 at 11.26.47 AM

Check out interviews with employees from some of the 100 Best Companies to Work For in Oregon winners and find out what makes their company a great place to work.


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