February 2026: Recent Developments in Corporate Bankruptcy and Restructuring

In an effort to keep you apprised of what’s happening in the realm of bankruptcy and restructuring, here are several February 2026 developments to be aware of.

1. Commercial Chapter 11 activity started 2026 at an elevated pace. Epiq AACER reported 956 commercial Chapter 11 filings in January 2026, up 76% from January 2025 (544). Overall, commercial filings were also higher, at 2,840 (up 18% year-over-year), and Subchapter V elections totaled 255 (up 68%).

2. Some notable Chapter 11 filings in February included recognizable names across retail, energy, and gaming. A few companies that filed during the month are Nine Energy Service (oilfield services), Francesca’s (specialty retailer), Eddie Bauer store operator (Catalyst Brands portfolio), and Hawthorne Race Course (Chicago-area racetrack / sportsbook / OTB).

3. In mid-February, Reuters reported negotiations focused on whether consigned/concession inventory (from brands that typically retain ownership until sale) could be swept into collateral for Saks’ bankruptcy financing—an issue that put vendors in an unusually strong negotiating posture. A week later, Reuters reported the court approved a $1 billion financing package, after Saks reached deals addressing vendor concerns (including treatment of consignment goods and payments tied to prepetition amounts).

4. In February, the long-running dispute over Serta Simmons Bedding’s 2020 debt transaction resurfaced in Houston bankruptcy court, with excluded lenders pressing claims that the deal improperly elevated participating lenders and sidelined the rest. The renewed fight follows an appellate ruling that reversed a prior decision approving the transaction under an “open-market purchase” theory—keeping the spotlight on how far borrowers and majority-lender groups can push documentation in out-of-court restructurings.