Business bankruptcies in the Valley doubled last year — and most are shutting down

By José Martínez

Business bankruptcies in the Rio Grande Valley doubled last year — and about half of the companies that filed expect to close their doors, according to federal court data released earlier this year.

In 2025, 127 businesses filed for bankruptcy, compared with 62 the previous year.

About 63% of the businesses that filed were located in Hidalgo County.

Of the 127 business bankruptcies filed in the Valley last year, about 58% were Chapter 7 liquidations, meaning the businesses sought to close operations and settle debts through asset sales.

Even so, the number of business bankruptcies in the Valley remains far below the levels seen a decade ago, when 316 businesses sought bankruptcy protection in 2015.

Still, each filing can ripple through the local economy — affecting jobs, suppliers, and public services.

A Mission-based cement company was among the businesses that filed last year. 57 Concrete said its financial strain was tied to immigration enforcement raids at construction sites across South Texas.

Mission-based Skyline EMS also filed for bankruptcy in July 2025 — its third filing in a decade. The ambulance provider reported more than $4 million in debt but said services would continue while it works through a five-year restructuring plan.

Bankruptcies that originated outside the region, also rippled through the binational economy.

The September 2025 filing by First Brands Group, a global auto parts manufacturer with operations in South Texas and northern Mexico, illustrates how large corporate bankruptcies can affect the region.

The bankruptcy has triggered roughly 1,900 layoffs across South Texas and northern Mexico, including 41 in Harlingen, about 600 in Brownsville, and roughly 1,300 in Matamoros.

There’s also the Pine Gate Renewables case.

The North Carolina company’s November 2025 filing put a proposed $249 million solar project in Hidalgo County in limbo. 

The proposed facility near Linn was expected to generate enough power for about 40,000 homes and create roughly 300 construction jobs, but the company is now seeking to sell its projects through a court-supervised process after citing rising costs, tariffs, and regulatory changes.

While business bankruptcies have increased, the vast majority of filings in the region still come from individuals.

However, the increase from 2024 to 2025 was modest compared with the surge in business filings.

Last year, 2,160 Valley residents filed for bankruptcy, up only 84 from 2024, when 2,083 filed. 

More than half were from Hidalgo County. 

Even so, individual filings remain far below the 5,500 recorded in 2015.