From Fortune:

The Wall Street love affair with blank-check firms ended in 2023 with a flood of major bankruptcies and stockholder losses according to data from Bloomberg. Among the 21 failing firms are companies working in electric vehicle production and farming. Critics of the trend claimed it was a bubble soon after it began.

A financial investment software firm found that SPAC companies were more likely to raise doubts about their future than non-SPAC companies. Even the 21 failures are unlikely to be the last as higher interest rates cause more issues for companies’ balance sheets. On top of this, some former SPAC companies have raised doubts through their own annual reports. One example is the firm Bird Global Inc., which filed for Chapter 11 bankruptcy last week.

SPAC craze may have started to come to an end, following proposed new SEC rules, but still continues to harm investors and bankrupt companies both alike.



Read more: SPAC companies accounted for at least 21 bankruptcies this year and a staggering $46 billion in lost investor value