The report from Cornerstone Research identifies a shift in venue preference as a notable trend, with the Southern District of Texas now handling 32% of all large filings. This surpasses the 20% share held by Delaware, marking a significant departure from Texas’s historical 13% average. The data underscores how high interest rates, regulatory uncertainty, and evolving consumer habits are straining companies that rely heavily on debt financing.

According to Matt Osborn, a principal at Cornerstone Research, the current environment is particularly unforgiving for sectors like manufacturing and services. Mega bankruptcies—defined as those involving assets exceeding $1 billion—hit 28 cases during the period, well above the historical average of 23. Drivers for this distress are multifaceted; 73% of these mega-filers pointed to shifting consumer behavior, while 65% cited legislative or trade policy challenges as primary contributors to their financial instability.