Worrying update on mom-and-pop bankruptcies shows recession has begun
Daily Mail••business
Key Points:
- Small business bankruptcies and store closures across America are surging, signaling a potential early warning of an impending recession, according to experts and bankruptcy lawyers.
- Rising costs for rent, products, and reduced consumer spending are squeezing small businesses, forcing many owners to risk personal finances to keep their shops open amid stiff competition from large retailers like Walmart and Amazon.
- Subchapter V bankruptcy filings, designed for small businesses with less than $3.4 million in debt, have already surpassed 2024’s total filings, with a notable 17% increase in August 2025 compared to the previous year.
- While large corporations report strong profits and fewer bankruptcies, small businesses face growing financial distress, reflected in declining economic confidence and increased
