Story perspectives

Private Equity-Backed Firms Fuel 2026 Bankruptcy Wave, Data Shows

9/4/2026

Summary

Story summary

Private-equity-backed firms have driven a wave of U.S. bankruptcies.
Saks, Eddie Bauer, Kmart, JoAnn Fabrics and Steward Health Care filed for bankruptcy in 2026.
PitchBook reports private-equity portfolios hold 13,500 unsold companies, including 2,563 consumer and 1,536 healthcare firms.
These firms typically carry debt about 50% of enterprise value, raising default risk.
Congress and states are advancing bills to tighten private-equity oversight, with health-care penalties led by Sen. Elizabeth Warren.

1 of 1

Story summary

Private-equity-backed firms have driven a wave of U.S. bankruptcies.
Saks, Eddie Bauer, Kmart, JoAnn Fabrics and Steward Health Care filed for bankruptcy in 2026.
PitchBook reports private-equity portfolios hold 13,500 unsold companies, including 2,563 consumer and 1,536 healthcare firms.
These firms typically carry debt about 50% of enterprise value, raising default risk.
Congress and states are advancing bills to tighten private-equity oversight, with health-care penalties led by Sen. Elizabeth Warren.