Bankruptcies have been rising for businesses in the Dallas-Fort Worth area, as industries struggle with ever-changing consumer preferences and economic uncertainty following the Covid-19 pandemic. Haynes Boone Restructuring Partner Matt Ferris spoke to the Dallas Business Journal on how the healthcare industry is responding.
Read an excerpt below:
“The healthcare sector in particular is seeing considerable bankruptcy activity,” said Matt Ferris, a Dallas-based partner in the restructuring group at Haynes Boone LLP.
During the pandemic, demand increased for a variety of healthcare items and services, and businesses responded.
"For example, medical supplies became very in demand in the Covid-focused period, and you had businesses that took on additional leverage, expanded business lines and made acquisitions to respond to that demand," Ferris said.
Demand has ebbed for those items but some companies are still dealing with the additional debt they took on, Ferris said.
