Comparison of Ease of Doing Business in USA & Asia & Companies that filed Bankruptcy in USA & Canada

In this blog we are going to see Ease of Doing Business comparison between USA & Asia. Plus we are going to see some companies which went bankrupt in USA & Canada.

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Companies That Filed for Bankruptcy or Insolvency (2024–2025)

Key Trends (Canada, 2024)

• 375 insolvencies/day (15-year high).
• 28.6% increase in business insolvencies vs. 2023.
• Hardest-hit sectors: Construction, transportation/warehousing, accommodation/food services.

Notes:

• Canada: Uses CCAA (Companies’ Creditors Arrangement Act) or receivership for restructuring.
• U.S.: Primarily Chapter 11 (reorganization) or Chapter 7 (liquidation).
• Some companies (e.g., Red Lobster, Bowflex) survived under new ownership.

Extra Reference :

Reuters

Reasons behind Bankruptcy or Insolvency of these USA & Canada Companies :

Common Themes Behind Bankruptcies

1. Post-Pandemic Shifts
   • Retailers (Party City, Joann, Bowflex) struggled as consumer habits reverted.
   • Airlines (Chrono Aviation) faced fuel costs + reduced business travel.
2. Debt & Financial Mismanagement
   • Many (Red Lobster, Big Lots, Mitel) carried unsustainable debt.
   • Private equity buyouts left some (Party City, Conn’s) overleveraged.
3. Industry Disruption
   • Traditional media (SaltWire) declined vs. digital.
   • EV startups (Fisker, Lion Electric) burned cash before scaling.
4. Macroeconomic Pressures
   • Inflation hurt discretionary spending (Express, LL Flooring).
   • High interest rates made refinancing debt harder.

Canada-Specific Trends (2024)

• Construction: High borrowing costs stalled projects.
• Transportation/Warehousing: Fuel + labor costs squeezed margins.
• Restaurants: Red Lobster’s struggles mirrored broader sector pain.

Companies survived (restructured or acquired) vs. those that fully shut down (liquidated or ceased operations):

Companies That SURVIVED Bankruptcy/Insolvency

(Restructured, Acquired, or Still Operating)

Companies That SHUT DOWN (Fully or Partially)

(Liquidated, Closed Stores, or Ceased Operations)

Borderline Cases

(Still in Limbo or Partial Survival)

Key Takeaways

1. Survival Rate: ~40% survived (via acquisitions/debt relief), while 60% downsized or liquidated.
2. Retail Apocalypse: Most casualties were brick-and-mortar (Big Lots, Party City, The Body Shop).
3. Restaurant/EV Struggles: Red Lobster survived, but Fisker didn’t.
4. Canada vs. U.S.:
   • Canada’s CCAA aims to save jobs (e.g., SaltWire).
   • U.S. Chapter 11 offers flexibility (e.g., Bowflex’s asset sale).

So this was the recently Bankrupt companies scenario in USA and Canada, now let’s find out comparison between USA & Asia that where you get more Ease of Doing Business.

Comparison of ease of doing business in the U.S., India, and Asia (focusing on key economies like China, Japan, Singapore), based on bankruptcy trends, regulatory frameworks, and macroeconomic factors:

Ease of Doing Business: U.S. vs. India vs. Asia

(Based on Bankruptcy Cases, Recovery Mechanisms, and Business Climate)

Key Takeaways

1. Best for Quick Restructuring: U.S. > Singapore > Japan (predictable laws, high recovery).
2. Most Challenging: India (slow courts, low recovery) and China (state interference).
3. Investor-Friendly: Singapore (no corruption) vs. U.S. (innovation-friendly).
4. Sector Risks:
   • Avoid Indian real estate and U.S. retail.
   • Bet on ASEAN manufacturing or U.S. tech.

Real-World Implications

• U.S. Example: Red Lobster’s fast Chapter 11 exit shows efficient insolvency tools.
• India Example: Jet Airways’ 5-year IBC limbo reflects systemic delays.
• Asia Example: Singapore’s Hyflux (water co.) restructured in months under judicial oversight.

Verdict:

• For startups/VC: U.S. or Singapore.
• For manufacturing: Vietnam/India (costs) but accept higher risk.
• For stability: Japan/Germany over China.

Conclusion: Bankruptcy Trends & Ease of Doing Business – U.S., India, and Asia

The recent wave of corporate bankruptcies and insolvencies highlights stark differences in business resilience, legal frameworks, and economic climates across the U.S., India, and Asia. Here’s the final analysis:

1. United States: Fast Restructuring, High Survival Rates

• Strength: The Chapter 11 bankruptcy system allows companies (like Red Lobster, Bowflex) to restructure debt quickly and emerge stronger.
• Weakness: High competition and shifting consumer trends (e.g., retail collapse) still claim many businesses.
• Key Takeaway: Best for high-risk, high-reward ventures with access to capital.

2. India: Improving but Still Challenging

• Strength: The Insolvency and Bankruptcy Code (IBC, 2016) improved transparency but remains slow.
• Weakness: Low recovery rates (~30%), bureaucratic delays, and weak creditor rights deter investors.
• Key Takeaway: Growing market potential but high risk for debt-heavy businesses (e.g., real estate).

3. Asia: A Mixed Landscape

• Singapore/Japan: World-class insolvency systems (fast restructuring, high recovery). Example: Hyflux (Singapore) resolved in months.
• China: State-driven interventions, unpredictable regulations. Example: Evergrande’s prolonged crisis.
• Key Takeaway: Singapore is safest, China is high-reward but risky, Japan balances stability and innovation.

Final Verdict: Where Should Businesses Operate?

• For quick recovery & investor confidence → U.S. or Singapore.
• For cost efficiency (manufacturing) → India/Vietnam (but accept higher risk).
• For stability & long-term growth → Japan/Germany over China.

Bottom Line

The ease of doing business depends on how easily companies can fail and recover. The U.S. leads in second chances, Asia offers niche advantages (e.g., Singapore’s speed), while India is improving but still lagging. Businesses must weigh risk vs. reward based on their sector and financial resilience.

Top 20 Countries with the Highest Ease of Doing Business (EoDB) Rankings — World Bank 2020 Report

The Ease of Doing Business (EoDB) ranking reflects how friendly a country’s regulations are to businesses, particularly small and medium enterprises. The higher the score, the easier it is to start, run, and close a business in that country. These rankings are based on factors like starting a business, getting credit, paying taxes, enforcing contracts, and resolving insolvency.

Here’s a summary table of the top 20 economies in the world, based on the World Bank’s 2020 Doing Business report (the latest official ranking before the index was discontinued):

Note: These rankings are from the World Bank Doing Business 2020 report, which was the final edition before the index was discontinued due to data concerns.

Extra Reference :

Economic Times

Chapter 11 Bankruptcy Basics – US Government

Investopedia – Chapter 11 Bankruptcy Related

I hope you like this article on comparison of Ease of Doing business between USA & Asia.

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