Business failures refer to instances where a company is unable to meet its financial obligations or achieve its operational objectives, leading to insolvency, closure, or significant operational downsizing. This term encompasses a range of issues, including bankruptcy, liquidation, and cessation of operations. Reasons for business failures can vary widely and may include poor management, lack of market demand, inadequate financial resources, ineffective business models, competition, economic downturns, and failure to adapt to changing market conditions. Business failures can have significant impacts not only on the owners and employees but also on customers, suppliers, and the broader economy.
Synapse Financial Technologies filed for Chapter 11 Bankruptcy in April 2024, disrupting the fintech landscape. Hundreds of millions in customer deposits were frozen, affecting around 100 clients including lenders. Regulatory…