Insanity Is Doing Something Over and Over Again
It's shocking to realize how many major companies have faced bankruptcy. Some bounced back and recovered, but others were lost forever. Changing markets, advances in engineering science, shifts in consumer tastes and financial missteps have all led to some once thriving businesses making a beeline to bankruptcy court.
Car companies, tech firms, popular fashion labels and honey section stores accept all been victims. Read on to larn more about some insanely pop businesses that went bankrupt at to the lowest degree once throughout their history.
Sears
Until the 1980s, Sears was ane of America's almost beloved retailers. Founded in 1893, it offered car parts and repairs, a portrait studio, optical services, an online travel bureau, flower commitment and in-dwelling carpet and upholstery cleaning — all in addition to cadre staples similar clothing and appliances. Unfortunately, the retail giant was shoved aside by deal competitors like Walmart, Best Buy and Amazon.
Sears filed for Chapter 11 bankruptcy protection in 2018 and began closing stores across the state. In October 2019, Market Watch reported that Sears offered creditors the choice to immediately take 2.five cents on the dollar for debt it owed instead of waiting for the company to complete its liquidation.
Curiosity
Back in 1996, it looked like comic behemothic Marvel was going to need some superheroes to save it from defalcation. The company made several business missteps, including investing in interactive CD-ROMs and opening the ill-blighted Curiosity Mania restaurant.
Notwithstanding, Marvel turned around when the company opened its own production studio. It was a risky move, considering the visitor had to put the rights to characters like Captain America, The Avengers and Black Panther upwardly for collateral to secure the $525 million needed to create Marvel Studios, but the risk paid off. Now part of the Disney family, Marvel made one of the most successful comebacks in business history.
Payless ShoeSource
Payless ShoeSource was one time the go-to store for discount footwear. Founded in 1956 with the goal of "democratizing fashion," the shoe chain was a popular self-serve retailer with locations worldwide. It looks similar yous will have to become used to paying more in the hereafter. The company announced information technology filed for defalcation a second fourth dimension in February 2019.
Payless ShoeSource eventually stepped its mode into a whopping $470 meg in debt. When the company outset filed bankruptcy in 2017, it attempted to reorganize and closed 700 stores to cutting costs. Two years after, the visitor's continued poor financial status caused information technology to hang upward its boots for good.
American Airlines
American Airlines may be the world's largest airline, only that didn't stop it from making an emergency landing in bankruptcy court back in 2011. The airline carries more than 200 million passengers to approximately 190 destinations across the world each yr and also operates the regional carrier, American Hawkeye.
Sky-high fuel costs, abiding disputes with unions and a serious slump in ticket sales suffered over the course of four bad years forced the visitor to file for Chapter 11 bankruptcy protection. Fortunately, an improved economy, a solid reorganization plan and a merger with U.S. Airways led the airline to fly high once again.
Eastman Kodak
If yous desire to remember Kodak when it was the undisputed leader in American photography, you'll probably accept to look at some old pictures. Founded in 1888, Kodak in one case ruled the photography world simply was forced to file for Chapter 11 bankruptcy in 2012. Sales had fallen far from 1976 levels, when 85% of all U.South. camera sales and ninety% of all movie sales displayed the Kodak name.
Heated competition with Japanese photo company Fuji and a late leap into the digital camera marketplace put an end to Kodak's say-so. The company has stayed afloat past ceasing the product of consumer cameras and focusing on the corporate imaging market.
Schwinn
Iconic American cycle company Schwinn rode into the sunset in October 1993 later the company filed for Chapter 11 defalcation. Schwinn was once a household name, thanks to mass marketing, a strong national dealer network and a focus on the children's market. The company besides produced a tandem bicycle as well as touring bikes and 10-speed racers.
By the late 1970s, however, consumers looked elsewhere for affordable, high-quality mountain and racing bikes. Faced with labor troubles and unable to compete with European and Japanese brands, Schwinn eventually shuttered. The brand name was subsequently acquired by Pacific Cycle and and then the Canadian company Dorel.
DeLorean Motor Company
Immortalized in the striking picture Back to the Hereafter, the DeLorean Motor Company's namesake automobile is now a affair of the past. Named after company founder John DeLorean, the company began operations in 1975 with the DeLorean being the just automobile information technology ever produced.
The iconic vehicle was famous for its stainless steel body and gull-wing doors, but the hefty $25,000 toll tag, lack of need and loftier production costs drove DMC straight into defalcation court back in 1982. Information technology didn't help when DeLorean — the founder, not the automobile — was arrested for conspiring to obtain and distribute cocaine to help save his company.
General Motors
Full general Motors brought Americans lots of iconic cars and trucks, including the Cadillac, Buick, Chevy Suburban and Chevy Tahoe, but the visitor'south finances crashed in 2009 as the nation faced the worst economical downturn since the Cracking Depression. In June of that twelvemonth, GM was forced to file Chapter 11 defalcation.
The federal government came to GM'due south rescue in 2009, bailing them out with $50 billion in financial aid. The cash infusion proved to be a major turnaround for GM, which is at present considered one of the best-run, most profitable car companies in the United states of america.
Brookstone
Recall when you couldn't walk through a mall without stopping to relax in i of Brookstone'due south incredible massage chairs? The shop gained popularity for its fun consumer gadgets, like specialty alarm clocks, clever wine-openers, drones and various massage devices.
It was hard for Brookstone to get upward against stores like The Sharper Epitome and online retailers like Amazon. The company also faced charges of bigotry and found itself facing off against PETA, who expressed business near the company's Frog-O-Sphere product. In 2018, the store closed all of its 101 stores, preferring to sell its wares online instead.
Things Remembered
It may exist time to choice out a goodbye gift for Things Remembered. The shop everyone runs to for last-minute personalized anniversary and graduation presents filed for bankruptcy protection in February 2019. Things Remembered offers engraved primal chains, pens and other cherished keepsakes that somewhen make their style to the bottom of your desk drawer.
After a failed effort to restructure its debt in 2016, the 40-yr-old chain will be forced to shutter nigh of its 400 stores. The retailer also tried increasing revenue by focusing on cyberspace sales, only with $120 1000000 in debt, Things Remembered may presently be forgotten.
Blockbuster Video
There was a time when Blockbuster was everyone'southward favorite store. At its pinnacle, the popular video and DVD rental company had nine,000 stores and 84,000 employees willing to tell you lot their favorite flick picks. During all those years, Blockbuster made some big money on overdue fees.
In 2000, when entrepreneur Reed Hastings approached Blockbuster to discuss a partnership with his company, Netflix, executives chuckled at his idea of letting people return DVDs when they wanted. Needless to say, the thought really caught on with consumers who were tired of playing Blockbuster tardily fees. In 2010, Hastings and Netflix had the terminal laugh when Blockbuster went bust.
Gibson Guitars
Rock and roll isn't dead, but it wound up on life support on May 1, 2018, when Gibson Guitars filed for bankruptcy. Known for making iconic guitars played by musicians like Elvis Presley, Pete Townshend and Eric Clapton, the Nashville-based visitor reported it was at least $100 million in debt when information technology filed papers seeking protection from creditors.
Hoping for an encore performance, Gibson liquidated its consumer electronics brands to focus on its instruments. In April 2019, the company told Guitar Earth it was launching "the absolute nearly compelling new collection from Gibson that anyone has seen in a long time."
Claire'south
Tweens and teens may take a sad diary entry for March nineteen, 2018, the day Claire'due south filed for Chapter 11 bankruptcy protection. Stocked with sparkly faux jewelry, lip gloss and Hullo Kitty gear, Claire'due south proudly boasts that techs have pierced more than 100 meg ears.
The store that calls itself "a girl'southward best friend" is working to reorganize later struggling with $1.9 meg in debt, a decline in mall shoppers and increased competition from stores like Zara and H&M. Claire's also ran into trouble back in 2018 when asbestos was plant in some of the stores' cosmetics. Yikes!
RadioShack
Founded in 1921, RadioShack was once everyone's go-to shop for that difficult-to-find battery, extension string or diode. With more than than 4,000 locations, the nerd haven that one time sold a diverseness of consumer tech and gadgets was forced to power downwards when it went bankrupt in 2015.
RadioShack seemed to have lost its spark every bit customers turned to online companies like Amazon and eBay to buy difficult-to-discover electronic parts and specialty electronic equipment. The visitor also lost a chunk of its customer base by failing to provide sufficient inventory, forcing its in one case die-difficult fan base to look elsewhere.
Circuit Urban center
Before there was Best Buy, shoppers looked to Excursion Metropolis for the newest televisions, stereos and home appliances. During the '80s and '90s, the visitor pioneered the concept of the big box appliance store and had more than 1,500 stores across the country.
Excursion Urban center too got into mass retailing automobiles with the cosmos of spinoff CarMax in 2002. Unfortunately, when the company fired more than 3,400 salespeople to cutting costs, most of its remaining talent jumped over to CarMax. The chain also experienced increasing difficulty competing against Best Buy, and they finally pulled the plug in 2008.
Sports Dominance
When it came to big box sporting goods stores, Sports Authority was — you know we just accept to say it — the authority for many years. The company's stores carried dress, footwear, team sports items, golf accessories, camping ground gear and practice equipment. When it was at the meridian of its game, the company had 460 stores, and its name was emblazoned on the Denver Broncos' stadium.
Unfortunately, Sports Authorization was far from existence a successful concern authorisation. Faced with violent competition from stores similar REI, Dick'south and various online retailers, the company fell on hard times. It eventually lost the retail game and went under in 2016.
Forever 21
Forever 21 came of historic period on September 29, 2019, when it filed for Chapter 11 bankruptcy. Once pop for "fast way" — trendy, mass-produced vesture that was cheap and disposable — the visitor was founded in 1984 past South Korean immigrants Jin Sook and Do Wan Chang. It catered to financially strapped young adults.
Despite the name, Forever 21 started showing its age when it began expanding its physical locations rather than concentrating on e-commerce. Environmental sensation likewise impacted the company's bottom line. According to analysts, a heightened involvement in high-quality, 2d-hand garments, rather than cheaply-made new wear may have also contributed to Forever 21's fashion fail.
Tower Records
Tower Records was once the place to go for all your music and movies. Founded in 1960, the company attracted music aficionados in search of the latest album or hard-to-find singles, and employees were known to select music that was popular in their communities. The store also sold CDs, cassettes and DVDs.
By the mid-2000s, the store saw signs of refuse equally consumers developed an interest in buying music from big box retailers and downloading songs and albums from sites like Napster and iTunes. The in one case-thriving concatenation's business ended on a deplorable note when it went broke in 2006.
Eddie Bauer
Eddie Bauer, the visitor that brought you the quilted downwards jacket, felt a financial chill when information technology was faced with bankruptcy. At its top, the maker of high-finish outdoor wear and accessories had more than 500 stores across North America, Japan and Germany.
The company was and so popular that it one time had a cross-branding arrangement with Ford Motor Visitor to produce Eddie Bauer Edition Ford vehicles. Other cross-branding deals included a licensing understanding with Giant bicycles and a Baby past Eddie Bauer accessories line. The private disinterestedness firm Aureate Gate Capital acquired Eddie Bauer in 2018 and merged it with another acquisition, California lifestyle retailer PacSun.
Enron
Founded in 1985, Enron was an American energy company created from the merger of Houston Natural Gas and InterNorth. At its height in 2000, Enron claimed revenues of $101 billion and employed 29,000 people. Forbes honored Enron by naming it "America'south Almost Innovative Company" for half-dozen years in a row.
Financial fraud eventually close down the powerhouse in Dec 2001, when investigators discovered that Enron hid millions in debt on fiscal reports. Investors and employees suffered the consequences, with many losing their life savings in the collapse of the visitor. The Enron Scandal resulted in the Sarbanes–Oxley Act, which fix strict reporting standards and strengthened penalties for fabricating, altering or destroying business records.
Chi-Chi's
Chi-Chi'south was one time the perfect place to get your Mexican fix. During the 1980s, folks couldn't get enough of their margaritas, nachos, chimichangas and fried ice-cream. Past 1986, Chi-Chi'due south had 237 locations, but increasing contest from other chains resulted in the restaurant filing for bankruptcy in 2003.
Immediately afterwards filing, more than 600 patrons became ill and four died later on contracting hepatitis A from green onions served at Chi-Chis. Customers presently said "evict" to the restaurant, and the chain closed in the U.S. in 2004. Several international locations are yet in business concern, and some of its products are however sold in grocery stores.
Bon-Ton
Founded in 1898, Bon-Ton was a staple in shopping malls across the United states of america. Devoted customers could find everything from clothing, jewelry, beauty products and footwear to home decor items. The company also operated several other brands, including Bergner'southward, Boston Shop, Carson's, Elder-Beerman, Herberger's and Younkers.
Overzealous expansion in the 1990s and 2000s resulted in the company's ever-increasing financial woes. Bon-Ton filed for defalcation, and its stores were eventually liquidated in 2018. However, it continues to have an online presence, and the website and social media accounts take teased a possible re-opening of brick-and-mortar locations in the time to come.
David's Conjugal
David's Bridal is struggling to go along the romance alive with customers equally it attempts to reorganize after filing for Affiliate eleven bankruptcy protection in 2018. The disbelieve wedding gown and accompaniment store appears to be close to a breakup with customers, thanks to increasing purchases of conjugal goods online.
It'southward estimated that 1 in four women purchased their wedding ceremony gowns from David's Bridal in the past. With approximately 300 stores located throughout the United States, Canada, the United Kingdom and Puerto Rico, the 69-year-old company is hoping to attract more customers by providing shop-bought gown returns, larger sizes and matching in-store and online promotions.
Borders
For more than than xxx years, Borders was the favorite haunt of bookworms. Founded in 1971 past two brothers attending the University of Michigan, the visitor gradually opened up stores across the United States and offered books that were specifically tailored to each customs and its readers.
The stores also opened cafes and eventually acquired the Waldenbooks concatenation. Stiff competition from brick-and-mortar rival Barnes & Noble and online bookseller Amazon eventually resulted in declining profits. Borders as well fabricated the mistake of trying to expand CD sales but as the public began downloading and streaming music. This chain's concluding chapter ended in 2011.
9 West
In April 2018, fashion retailer 9 W's parent visitor Nine West Holdings was forced to file for bankruptcy. Founded in 1993 with a focus on footwear, the company gradually expanded to carry a diverseness of accessories and brands, like Bandolino, Anne Klein and Gloria Vanderbilt.
Prior to declaring bankruptcy, Ix West Holdings was in debt to the tune of more than than $1 billion. In June 2018, Ix West seemed to have nine lives when it was caused by Authentic Brands Group. In September 2019, ABG tapped supermodel Tyra Banks to become Nine West's global administrator.
Compaq
When the PC revolution hit, Compaq was 1 of the tech leaders. Started in 1982 by three old Texas Instruments executives, the trio came up with their visitor's proper noun by cleverly combining the words "compatibility and quality." Consumers loved the company's portable computers, and Compaq grew to become the largest personal computer system supplier of the 1990s.
The visitor struggled to compete confronting other calculator companies that focused heavily on advertising and marketing, and it also suffered internal struggles every bit several major executives were fired or resigned. Compaq was going nether in 2002 only was acquired by competitor Hewlett-Packard for $25 billion. HP causeless control of the company'southward assets and quietly retired the Compaq name.
Toys "R" Us
Remember when you were a Toys "R" Us kid? By 1990, the chain was the largest toy retailer in the U.s. — and then large, in fact, that it put about other toy stores out of concern. Children begged to stroll down the aisles in search of the perfect Barbie, LEGO set or teddy bear.
Unfortunately, Toys "R" Us figured out Walmart and other large retailers didn't come to play and were willing to use toys every bit their loss leaders, slashing prices to get consumers — who would inevitably buy other items — inside the door. The company besides couldn't compete with Amazon and eBay, who often sold the same toys at a lower cost. The company closed its doors for skilful in 2018.
Gymboree
Gymboree was once a family favorite, with 945 stores beyond the U.S. and Canada. The pop kids' clothing retailer closed its doors later on going broke a 2nd time in 2019, along with its concatenation of Crazy 8 children's shops.
Gymboree faced competition from online retailers along with The Gap, big box and disbelieve stores, where moms and dads could detect cheaper clothing for their chop-chop growing children. The visitor emerged from bankruptcy in 2017 only never had solid a profitability game program. In the terminate, the pop retailer was forced to file for protection from creditors who were owed approximately $212 meg.
Charlotte Russe
Clothing retailer Charlotte Russe fell apart at the seams when it filed for Affiliate 11 in February 2019. Opening its showtime store in Carlsbad, California, in 1975, the company had more than 500 brick-and-mortar shops that marketed loads of inexpensive fashions to teens and immature adult women.
In 2009, the company was caused for $380 million by equity house Advent International. A decline in in-store traffic forced Charlotte Russe to declare bankruptcy and liquidate. In March 2019, Toronto-based clothing manufacturer YM Brands purchased Charlotte Russe and appear plans to open up 100 locations across the United States.
Kenny Rogers' Roasters
Sporting the proper name of country vocaliser Kenny Rogers, this fast nutrient restaurant served up wood-fired rotisserie chicken and sides. Founded in 1991, the popular chain opened more 425 restaurants in the U.S. and abroad. By 1996, KRR boasted annual sales of $300 million.
The company faced stiff competition from Boston Market and Kentucky Fried Chicken so became embroiled in a lawsuit with Cluckers, which claimed KRR had copied its recipes. The chain filed for defalcation in 1998 and closed its U.Due south. locations, only it maintains a presence overseas after being purchased by Roasters Asia Pacific.
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Source: https://www.consumersearch.com/technology/insanely-popular-businesses-went-bankrupt?utm_content=params%3Ao%3D740007%26ad%3DdirN%26qo%3DserpIndex