Part 5/16:
Now, with inflation remaining persistently high—causing costs to skyrocket—and interest rates rising sharply, companies find their debts unmanageable. The speaker cites data from company reports indicating that 61% blame inflation for reducing demand and increasing costs, while 45% attribute their financial troubles to high interest rates making debt servicing unfeasible. Examples include Spirit Airlines, which cited fuel and interest costs; Big Lots, noting a shift to e-commerce reducing foot traffic; and Franchise Group, highlighting that elevated interest expenses hurt cash flow.