Definition of Insanity Is Doing the Same Thing Over and Over Again
It'south shocking to realize how many major companies take faced defalcation. Some bounced dorsum and recovered, only 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 beloved department stores have all been victims. Read on to learn more nigh some insanely popular businesses that went bankrupt at least once throughout their history.
Sears
Until the 1980s, Sears was ane of America's near honey retailers. Founded in 1893, information technology offered car parts and repairs, a portrait studio, optical services, an online travel agency, flower delivery and in-dwelling house carpet and upholstery cleaning — all in improver to core staples like wearable and appliances. Unfortunately, the retail giant was shoved aside by deal competitors like Walmart, Best Buy and Amazon.
Sears filed for Affiliate 11 bankruptcy protection in 2018 and began endmost stores beyond the country. In October 2019, Market Watch reported that Sears offered creditors the option to immediately take two.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 similar comic giant Marvel was going to need some superheroes to save it from bankruptcy. The company made several business organization missteps, including investing in interactive CD-ROMs and opening the ill-fated Marvel Mania restaurant.
However, Curiosity turned effectually when the company opened its own production studio. Information technology was a risky move, because the company had to put the rights to characters like Helm America, The Avengers and Blackness Panther up for collateral to secure the $525 1000000 needed to create Marvel Studios, but the chance paid off. At present role of the Disney family, Curiosity made i of the most successful comebacks in business organisation history.
Payless ShoeSource
Payless ShoeSource was one time the go-to store for disbelieve footwear. Founded in 1956 with the goal of "democratizing manner," the shoe chain was a popular self-serve retailer with locations worldwide. It looks like you will have to get used to paying more in the future. The company announced it filed for bankruptcy a second time in February 2019.
Payless ShoeSource eventually stepped its way into a whopping $470 meg in debt. When the company first filed bankruptcy in 2017, information technology attempted to reorganize and closed 700 stores to cut costs. Two years later, the visitor's continued poor financial status caused information technology to hang up its boots for good.
American Airlines
American Airlines may exist the earth'southward 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 globe each year and also operates the regional carrier, American Eagle.
Sky-high fuel costs, constant disputes with unions and a serious slump in ticket sales suffered over the course of four bad years forced the company to file for Chapter eleven bankruptcy protection. Fortunately, an improved economy, a solid reorganization plan and a merger with U.S. Airways led the airline to fly loftier one time again.
Eastman Kodak
If you want to remember Kodak when it was the undisputed leader in American photography, you'll probably have to look at some old pictures. Founded in 1888, Kodak once ruled the photography world only was forced to file for Affiliate eleven defalcation in 2012. Sales had fallen far from 1976 levels, when 85% of all U.S. photographic camera sales and 90% of all film sales displayed the Kodak name.
Heated competition with Japanese photo company Fuji and a late leap into the digital camera market put an end to Kodak's dominance. The company has stayed afloat past ceasing the product of consumer cameras and focusing on the corporate imaging marketplace.
Schwinn
Iconic American cycle visitor Schwinn rode into the sunset in October 1993 after the company filed for Chapter 11 bankruptcy. Schwinn was one time a household name, cheers to mass marketing, a potent national dealer network and a focus on the children's market place. The visitor as well produced a tandem bicycle besides as touring bikes and 10-speed racers.
By the late 1970s, yet, 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 later acquired by Pacific Cycle and so the Canadian company Dorel.
DeLorean Motor Company
Immortalized in the hit pic Back to the Time to come, the DeLorean Motor Company'due south namesake car is now a thing of the past. Named after company founder John DeLorean, the company began operations in 1975 with the DeLorean beingness the only car it ever produced.
The iconic vehicle was famous for its stainless steel body and dupe-wing doors, but the hefty $25,000 price tag, lack of demand and high production costs drove DMC direct into defalcation court back in 1982. It didn't assist when DeLorean — the founder, not the auto — was arrested for conspiring to obtain and distribute cocaine to assistance save his company.
General Motors
General Motors brought Americans lots of iconic cars and trucks, including the Cadillac, Buick, Chevy Suburban and Chevy Tahoe, but the company's finances crashed in 2009 as the nation faced the worst economic downturn since the Great Depression. In June of that year, GM was forced to file Chapter eleven defalcation.
The federal regime came to GM's rescue in 2009, bailing them out with $50 billion in financial aid. The greenbacks infusion proved to be a major turnaround for GM, which is at present considered one of the best-run, nearly profitable car companies in the United States.
Brookstone
Recollect when you couldn't walk through a mall without stopping to relax in ane of Brookstone'due south incredible massage chairs? The store gained popularity for its fun consumer gadgets, like specialty alarm clocks, clever vino-openers, drones and various massage devices.
It was hard for Brookstone to become up confronting stores similar The Sharper Image and online retailers like Amazon. The company too faced charges of discrimination and found itself facing off confronting PETA, who expressed concern about the company'due south 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 be time to selection 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 central chains, pens and other cherished keepsakes that eventually make their manner to the bottom of your desk drawer.
Afterwards a failed effort to restructure its debt in 2016, the 40-year-former concatenation volition be forced to shutter most of its 400 stores. The retailer also tried increasing revenue by focusing on internet sales, only with $120 1000000 in debt, Things Remembered may shortly exist forgotten.
Blockbuster Video
There was a time when Blockbuster was everyone's favorite store. At its peak, the pop video and DVD rental visitor had ix,000 stores and 84,000 employees willing to tell y'all their favorite movie picks. During all those years, Blockbuster made some large money on overdue fees.
In 2000, when entrepreneur Reed Hastings approached Blockbuster to discuss a partnership with his company, Netflix, executives chuckled at his thought of letting people render DVDs when they wanted. Needless to say, the idea really caught on with consumers who were tired of playing Blockbuster late fees. In 2010, Hastings and Netflix had the last laugh when Blockbuster went bust.
Gibson Guitars
Rock and whorl isn't dead, only it wound up on life support on May 1, 2018, when Gibson Guitars filed for bankruptcy. Known for making iconic guitars played by musicians similar Elvis Presley, Pete Townshend and Eric Clapton, the Nashville-based company reported it was at least $100 meg in debt when it 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 visitor told Guitar World information technology was launching "the absolute nearly compelling new collection from Gibson that anyone has seen in a long time."
Claire's
Tweens and teens may have a pitiful diary entry for March 19, 2018, the solar day Claire's filed for Chapter 11 bankruptcy protection. Stocked with sparkly faux jewelry, lip gloss and How-do-you-do Kitty gear, Claire's proudly boasts that techs have pierced more than 100 million ears.
The store that calls itself "a girl's best friend" is working to reorganize afterward struggling with $one.9 1000000 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 constitute in some of the stores' cosmetics. Yikes!
RadioShack
Founded in 1921, RadioShack was once everyone'southward become-to store for that hard-to-find bombardment, extension cord or diode. With more than iv,000 locations, the nerd oasis that in one case sold a diversity of consumer tech and gadgets was forced to power down when information technology went bankrupt in 2015.
RadioShack seemed to accept lost its spark as customers turned to online companies like Amazon and eBay to buy hard-to-find electronic parts and specialty electronic equipment. The visitor as well lost a clamper of its client base by failing to provide sufficient inventory, forcing its once die-difficult fan base to look elsewhere.
Excursion City
Earlier there was Best Buy, shoppers looked to Circuit Metropolis for the newest televisions, stereos and habitation appliances. During the '80s and '90s, the visitor pioneered the concept of the big box appliance store and had more than than 1,500 stores across the country.
Circuit City too got into mass retailing automobiles with the creation of spinoff CarMax in 2002. Unfortunately, when the company fired more than three,400 salespeople to cutting costs, most of its remaining talent jumped over to CarMax. The concatenation as well experienced increasing difficulty competing against Best Buy, and they finally pulled the plug in 2008.
Sports Authority
When information technology came to big box sporting goods stores, Sports Say-so was — you know we just accept to say it — the dominance for many years. The company's stores carried clothes, footwear, team sports items, golf game accessories, camping gear and do equipment. When it was at the top of its game, the company had 460 stores, and its proper noun was emblazoned on the Denver Broncos' stadium.
Unfortunately, Sports Say-so was far from beingness a successful business organisation authority. Faced with vehement competition from stores like REI, Dick's and various online retailers, the company fell on difficult times. It eventually lost the retail game and went under in 2016.
Forever 21
Forever 21 came of age on September 29, 2019, when it filed for Chapter 11 defalcation. Once pop for "fast fashion" — trendy, mass-produced clothing that was cheap and disposable — the company was founded in 1984 by Due south Korean immigrants Jin Sook and Do Wan Chang. It catered to financially strapped young adults.
Despite the name, Forever 21 started showing its historic period when it began expanding its physical locations rather than concentrating on due east-commerce. Environmental awareness also impacted the visitor's bottom line. According to analysts, a heightened interest in loftier-quality, second-hand garments, rather than cheaply-made new clothing may have also contributed to Forever 21's manner fail.
Belfry Records
Tower Records was one time 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 pop in their communities. The store too sold CDs, cassettes and DVDs.
Past the mid-2000s, the shop saw signs of decline as consumers developed an interest in buying music from big box retailers and downloading songs and albums from sites similar Napster and iTunes. The in one case-thriving chain'southward business ended on a sad annotation when it went bankrupt in 2006.
Eddie Bauer
Eddie Bauer, the company that brought you the quilted down jacket, felt a fiscal chill when it was faced with bankruptcy. At its top, the maker of loftier-end outdoor wear and accessories had more than 500 stores across North America, Japan and Germany.
The company was so popular that it in one case had a cantankerous-branding system with Ford Motor Company to produce Eddie Bauer Edition Ford vehicles. Other cross-branding deals included a licensing agreement with Giant bicycles and a Infant past Eddie Bauer accessories line. The individual equity firm Golden Gate Upper-case letter acquired Eddie Bauer in 2018 and merged information technology 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 meridian in 2000, Enron claimed revenues of $101 billion and employed 29,000 people. Forbes honored Enron by naming it "America's Most Innovative Company" for vi years in a row.
Financial fraud somewhen shut down the powerhouse in Dec 2001, when investigators discovered that Enron hid millions in debt on financial reports. Investors and employees suffered the consequences, with many losing their life savings in the collapse of the company. 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 once the perfect place to become your Mexican ready. During the 1980s, folks couldn't get enough of their margaritas, nachos, chimichangas and fried ice-foam. By 1986, Chi-Chi'south had 237 locations, simply increasing competition from other chains resulted in the restaurant filing for bankruptcy in 2003.
Immediately afterwards filing, more than than 600 patrons became ill and four died later on contracting hepatitis A from green onions served at Chi-Chis. Customers soon said "evict" to the eatery, and the chain airtight in the U.S. in 2004. Several international locations are still in business, and some of its products are still sold in grocery stores.
Bon-Ton
Founded in 1898, Bon-Ton was a staple in shopping malls beyond the Usa. Devoted customers could discover everything from vesture, jewelry, dazzler products and footwear to habitation decor items. The company also operated several other brands, including Bergner'due south, Boston Shop, Carson's, Elder-Beerman, Herberger'southward and Younkers.
Overzealous expansion in the 1990s and 2000s resulted in the company'southward e'er-increasing financial woes. Bon-Ton filed for defalcation, and its stores were eventually liquidated in 2018. However, information technology continues to have an online presence, and the website and social media accounts have teased a possible re-opening of brick-and-mortar locations in the future.
David's Conjugal
David'due south Conjugal is struggling to proceed the romance alive with customers as it attempts to reorganize after filing for Chapter 11 defalcation protection in 2018. The discount wedding gown and accessory shop appears to be close to a breakup with customers, thanks to increasing purchases of bridal appurtenances online.
It's estimated that one in iv women purchased their wedding gowns from David's Bridal in the by. With approximately 300 stores located throughout the The states, Canada, the United Kingdom and Puerto Rico, the 69-year-one-time company is hoping to attract more than customers past providing store-bought gown returns, larger sizes and matching in-store and online promotions.
Borders
For more than than 30 years, Borders was the favorite haunt of bookworms. Founded in 1971 past 2 brothers attending the University of Michigan, the company gradually opened upward stores across the United States and offered books that were specifically tailored to each community and its readers.
The stores too opened cafes and eventually caused the Waldenbooks chain. Potent competition from brick-and-mortar rival Barnes & Noble and online bookseller Amazon eventually resulted in declining profits. Borders also fabricated the mistake of trying to aggrandize CD sales simply as the public began downloading and streaming music. This chain'south last chapter ended in 2011.
Nine West
In April 2018, way retailer Nine West'south parent company Nine Due west Holdings was forced to file for bankruptcy. Founded in 1993 with a focus on footwear, the company gradually expanded to deport a multifariousness 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 $1 billion. In June 2018, Nine West seemed to have nine lives when information technology was acquired past Authentic Brands Grouping. In September 2019, ABG tapped supermodel Tyra Banks to become Nine Westward'due south global ambassador.
Compaq
When the PC revolution hit, Compaq was 1 of the tech leaders. Started in 1982 by three quondam Texas Instruments executives, the trio came upwardly with their company's name 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 company struggled to compete confronting other computer companies that focused heavily on ad and marketing, and it also suffered internal struggles as several major executives were fired or resigned. Compaq was going nether in 2002 but was caused by competitor Hewlett-Packard for $25 billion. HP assumed control of the company'due south assets and quietly retired the Compaq name.
Toys "R" United states
Remember when y'all were a Toys "R" Us kid? Past 1990, the chain was the largest toy retailer in the United States — and so large, in fact, that information technology put nearly other toy stores out of business organisation. Children begged to stroll down the aisles in search of the perfect Barbie, LEGO set up or teddy bear.
Unfortunately, Toys "R" Us figured out Walmart and other big retailers didn't come up to play and were willing to utilise toys as their loss leaders, slashing prices to get consumers — who would inevitably purchase other items — inside the door. The company likewise couldn't compete with Amazon and eBay, who often sold the aforementioned toys at a lower toll. The visitor closed its doors for skilful in 2018.
Gymboree
Gymboree was one time a family favorite, with 945 stores across the U.S. and Canada. The popular kids' wearable retailer closed its doors subsequently going bankrupt a second time in 2019, along with its chain of Crazy 8 children's shops.
Gymboree faced competition from online retailers along with The Gap, big box and discount stores, where moms and dads could find cheaper clothing for their chop-chop growing children. The company emerged from defalcation in 2017 but never had solid a profitability game plan. In the end, the pop retailer was forced to file for protection from creditors who were owed approximately $212 1000000.
Charlotte Russe
Article of clothing retailer Charlotte Russe fell apart at the seams when information technology filed for Chapter xi in February 2019. Opening its first 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 developed women.
In 2009, the visitor was acquired for $380 1000000 by disinterestedness business firm Advent International. A decline in in-store traffic forced Charlotte Russe to declare defalcation and liquidate. In March 2019, Toronto-based clothing manufacturer YM Brands purchased Charlotte Russe and announced plans to open 100 locations beyond the United States.
Kenny Rogers' Roasters
Sporting the name of state singer Kenny Rogers, this fast nutrient restaurant served upward wood-fired rotisserie chicken and sides. Founded in 1991, the popular chain opened more than 425 restaurants in the U.S. and abroad. By 1996, KRR boasted annual sales of $300 one thousand thousand.
The visitor faced stiff competition from Boston Market and Kentucky Fried Chicken and then became embroiled in a lawsuit with Cluckers, which claimed KRR had copied its recipes. The chain filed for bankruptcy in 1998 and closed its U.S. locations, simply 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
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