Goodbye 2023: year 2023 It was very good for the Indian economy. But, the bad effect of recession was visible in America and Europe. Due to this, some big renowned companies could not bear the pressure due to various reasons and finally they closed their doors this year. Due to global slowdown, American companies were worst affected. Many companies were declared bankrupt there. Their associate companies in India also had to face its adverse effects. Let’s take a look at those companies and causes in this passing year. According to various media reports, the highest number of companies filed bankruptcy petitions in America after 2020. According to statistics, the number of corporate bankruptcies increased by 30 percent in the last 12 months.
WeWork could not work
WeWork, the giant company that provides office space to companies, took its bags along with its bedding this year. The company had suffered huge losses due to the lockdown during Covid-19. Despite all efforts, WeWork failed to recover from this setback and in November it finally started the process of declaring bankruptcy. WeWork, a company started in 2010 by Adam Neumann, once became the world’s most valuable startup with a market value of $47 billion. However, its Indian company has expressed hope that it will not be affected. Apart from this, the last day of buy now pay later company ZestMoney in India will be 31st December.
China’s biggest property company sank
Evergrande was once a symbol of China’s progress. But, this second largest property dealer of China is now being considered a symbol of China’s decline. China implemented new rules for the property sector in 2020, due to which the company started facing cash crunch and got ruined due to debt trap. At present the company has a debt of 300 billion dollars. The property sector accounts for one-fourth of China’s GDP. In August this year, the company finally surrendered and started the bankruptcy process in New York.
Bad ending for Bed Bath & Beyond
America’s leading retailer Bed, Bath & Beyond met a painful end this year. This approximately 50 year old company was very popular in America. But, in April this year he filed a petition for bankruptcy. The company had indicated this in January 2023 itself. He had told that the company no longer has cash left. After this information came out, the company’s shares fell badly. Online shopping was also held responsible for the fate of Bed Bath & Beyond.
Banks faced an environment like 2008
Like the financial crisis of 2008, this year proved to be very bad for banks. The turmoil in the American banking system first affected Switzerland’s famous Credit Suisse Bank. This bank was embroiled in controversies. In America too, people started withdrawing their money from banks, due to which SVB Financial Group was badly affected. Its subsidiary Silicon Valley Bank filed for bankruptcy. After this SVB also collapsed.
Clouds of crisis may clear in 2024
Market experts have expressed hope that these clouds of fear of global recession may disappear in the new year 2024. The US Federal Reserve will not increase interest rates further, due to which there will be stability in monetary policy and companies will get a chance to improve.
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