High Leverage Drives Bankruptcies in U.S. Gaming, Leisure, Lodging and Restaurant Sector

Recent bankruptcies in the U.S. gaming, leisure, lodging, and restaurant (GLLR) sector reflect elevated leverage, higher borrowing costs, persistent cost inflation and softer discretionary consumer spending, Fitch Ratings reported. Pressures have been most acute for highly leveraged companies, particularly those serving more budget-constrained consumers. Leveraged loan default activity in GLLR increased between 2022 and 2024...