We study the impact of default by one firm on its competitors in a well defined network of firm-level competition ties. This work complements existing empirical evidence on bankruptcy spillovers on linked firms demonstrating the role of such interconnections in identifying intra-industry risk dependencies and in explaining the behaviour of equity and CDS prices upon announcement of bankruptcy. Our preliminary analysis documents significant negative stock price reactions by competitors in the same industry but finds no evidence of industry-wide contagion effects beyond product market links nor of inter-industry contagion across lines of business in equity markets.