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CNN
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This year has been brutal for a number of well-known companies and their bottom lines.
As inflation continued to rear its ugly head, consumers cut back on discretionary spending, pushing some companies to file for bankruptcy. Other brands have fallen victim to changing trends or even more malicious evils, like cyberattacks.
At least 19 companies have cut a total of 14,000 jobs due to bankruptcies, according to Challenger, Gray & Christmas, an outplacement services company.
Notably, retail closures have resumed this year because the sector high sugar of 2021 and 2022 – when consumers were buying new furniture, TVs and clothes – is over. There were more than 7,100 store closures through the end of November, according to research firm CoreSight, an increase of 69% from the same period last year.
Of course, filing for bankruptcy does not necessarily mean that a business is going bankrupt. Companies tend to use the Chapter 11 process to terminate certain operations, combat growing debt, and save on costs by closing locations.
Here are some of the most notable bankruptcies of 2024, listed alphabetically:
Big prizes deposited bankruptcy in September, after having previously warned that he had “substantial doubt” on his survival. The discount retailer recently announced that its deal to sell itself to a private equity firm had fallen through and that it would soon close its remaining 963 locations.
Perhaps best known for its late-night news shows, the home gym equipment maker filed for bankruptcy in March. He emerged from Chapter 11 a few months later, signing a deal with a Taiwan-based company to “acquire substantially all of the assets” for $37.5 million in cash.
The once-trendy mall staple has been trademarked for bankruptcy in April after constantly battling continued missteps on its product line that failed to excite buyers. As a result, nearly 100 locations closed and the company, which also owns the Bonobos brand, sold to a consortium led by WHP Global in June.
The 81-year-old fabric and craft retailer filed for bankruptcy in March, a victim of customers who cut back on spending, particularly on fabrics, art and supplies. Joann’s stock was delisted from Nasdaq and the company became privately owned, reducing its debt and keeping all 850 stores open.
The home retailer formerly known as Lumber liquidators filed for bankruptcy in August. The retailer has been hit by budget-conscious customers tightening their wallets due to costly renovations and a slowing home sales market. After initially announcing the complete closure of its 94 stores, a private equity firm bought and saved the company.
The four-decade-old retailer filed for bankruptcy in December, it is the second time in less than two years. As a result, Party City close its approximately 700 sites early next year. The New Jersey-based company has faced inflationary pressures on product costs, which have reduced consumer spending, according to CEO Barry Litwin, as well as $800 million in outstanding debt.
The restaurant chain that brought affordable shrimp and lobster to America’s middle class and became the world’s largest seafood restaurant chain has filed for marketing authorization. bankruptcy in May. Years of underinvestment in marketing, food quality, service and restaurant improvements have hurt the chain’s ability to compete with growing fast-casual and fast-casual chains. After closing more than 100 locations, Red Lobster emerged from bankruptcy in September thanks to new ownership and well-established management. change the menu.
The economical transporter in yellow hues landed in bankruptcy in November due to mounting losses, unaffordable debt, increased competition and the inability to merge with other airlines. Spirit said that due to its bankruptcy and negotiations with its existing creditors, it will be able to emerge early next year with reduced debt and increased financial flexibility.
Stoli Group USA, owner of Vodka of the same name, filed for bankruptcy in December. A number of things have gone wrong for the unit, including a slowdown in demand for spirits, a major cyberattack that derailed its operations and several years of battling Russia in court.
The American casual dining chain known for its “flair” has filed an application Chapter 11 in November after years of dealing with a smaller footprint and declining customer numbers. TGI Fridays said in a statement that the fallout from the Covid-19 pandemic was the “primary driver of our financial challenges” and that it would use this process to “explore strategic alternatives to ensure the long-term viability of the brand.”
The 75-year-old hardware store has filed an application bankruptcy in October and ended its legacy by selling much of its business to a rival. In court filings, True Value said it faces a significant cash flow crisis as the housing market stalls and consumers have become much pickier about discretionary purchases like equipment. (True Value stores are still open as they are not part of the bankruptcy proceedings).
The kitchen brand, known for its plastic food containers, filed for bankruptcy in September after years of declining popularity and financial difficulties. In late November, Tupperware’s brand and intellectual property were purchased by a private equity firm whose goal is to keep the company operational.
