When a company goes bankrupt, it can either mean a reorganization or a complete liquidation.

In many cases, it’s the investors who lose out. While some might get their money back, others don’t. And then there’s the impact on customers.

Some might suddenly find out they don’t have services or merchandise because a company went under. In other words, filing for bankruptcy is never good news.

Unfortunately, bankruptcies in the U.S. have been on the rise in recent years.

Number of bankruptcies filed in last year

  • Bankruptcy filings in the U.S. increased 11% in 2025, including both personal and business bankruptcies, according to Debt.org.
  • The trend is continuing in 2026, with an 11.9% increase in filings in the first quarter of the year.
  • While the number is not at the same level as during the pandemic, it is on an upward trend, an analysis of U.S. Court data shows.

And now one fintech firm’s abrupt bankruptcy has left some small businesses in a tough spot.

Fintech firm files for Chapter 7 bankruptcy

Court documents filed on PacerMonitor show that fintech firm Parker has filed for bankruptcy. The company raised $200 million in total funding since it started in 2019, BankingDive reported.

But Parker’s website makes no mention of the bankruptcy and instead touts how much money it has raised.

Parker’s abrupt closure has left small businesses in a tough spot, “and pose questions about Piermont’s and Patriot’s oversight of the program,” fintech consultant Jason Mikula wrote on LinkedIn.

The fintech firm became a popular corporate card for business in 2023. Parker founder Sibous told TechCrunch that it’s “secret sauce” was its underwriting. The company assessed the cash flow in a way that e-commerce brands could have credit limits that meet the demands of their business, he told TechCrunch.

Parker was also known for having weekly or even daily statements to help businesses better manage their cash flow.

“We’ve essentially changed the way statements work for credit cards, so instead of operating on a monthly statement, we have the option to work on daily or weekly statements,” Sibous told TechCrunch. “That helps these brands a ton with cash flow.”

At the time, Parker said it was serving e-commerce businesses that are underserved by traditional banks and other fintech firms.

Parker’s sudden bankruptcy left some small businesses in the dark.

Getty Images

Parker’s sudden bankruptcy

Information about Parker’s bankruptcy began swirling in early May. An X post on May 5by Iris co-founder Drew Fallon confirmed that Patriot Bank, Parker’s banking operators, had sent a letter to clients confirming the fintech firm has closed.

Parker founder Yacine Sibous confirmed the rumors on X on May 10.

Three weeks ago, I thought Parker was going to be acquired in a deal worth nearly $90M. Yesterday, we filed for Chapter 7.

He went on to say that many of the rumors circulating online about the failures of the company were “simply not accurate.”

“Over the last few years, we faced leadership turnover, a much tougher market, slowing growth, and the realities of trying to scale a venture-backed business after momentum fades,” he explained.

Parker decided to pursue a sale of the business that ultimately did not close.

It’s unclear why the business deal did not go through or why the website is still live with no mention of the bankruptcy.

Related: Warren Buffett’s Berkshire dumps entire stake in iconic fintech giant