Several big-name companies are finding themselves in a struggle to survive in the economic downturn, suggesting a wave of bankruptcies akin to one sparked by the Lehman collapse could be expected in the upcoming months.
Reuters reports, "companies in a range of businesses, including hair salons, restaurants, renewable energy, and the paper industry, have tumbled into Chapter 11 in the past few months." The effects of the struggling economy also threaten "companies in industries as diverse as shipping, tourism, media, energy and real estate."
Industry experts say predicting a wave of bankruptcies is "no easy task." The largest threats to already struggling companies are the probability of sovereign debt crisis in the eurozone and a double-dip recession in the U.S.
These events could ultimately induce a string of business failures that some bankruptcy and restructuring experts warn could "rival the one that followed Lehman Brothers."
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