The study shows that California is experiencing the tenth-most severe corporate financial distress in the U.S.
The research by online HR platform Techr analyzed 2025 data from the U.S. Courts on business bankruptcy filings and compared it with 2024 figures from the same source. The percentage change was calculated to identify the states experiencing the highest rates of corporate financial distress.
California ranks tenth with a 20.51% increase in business bankruptcy filings. That's 8.3 percentage points higher than the national average of 12.21%. Business bankruptcy filings in the Golden State rose from 40,762 in 2024 to 49,122 in 2025.
Looking at the study, a spokesperson at Techr commented:
"The data highlights that California is experiencing the tenth-most severe corporate financial distress.
“Furthermore, the research suggests that companies increasingly turn to bankruptcy protection at rates significantly above the national average in regions facing economic pressures, changing market conditions, and business challenges. This state presents concerning indicators for business stability and economic health."
The research by online HR platform Techr analyzed 2025 data from the U.S. Courts on business bankruptcy filings and compared it with 2024 figures from the same source. The percentage change was calculated to identify the states experiencing the highest rates of corporate financial distress.
California ranks tenth with a 20.51% increase in business bankruptcy filings. That's 8.3 percentage points higher than the national average of 12.21%. Business bankruptcy filings in the Golden State rose from 40,762 in 2024 to 49,122 in 2025.
Looking at the study, a spokesperson at Techr commented:
"The data highlights that California is experiencing the tenth-most severe corporate financial distress.
“Furthermore, the research suggests that companies increasingly turn to bankruptcy protection at rates significantly above the national average in regions facing economic pressures, changing market conditions, and business challenges. This state presents concerning indicators for business stability and economic health."
