As they say, “Nothing lasts forever,” and while bankruptcy isn’t a total death sentence for a company, it certainly doesn’t bode well at all for one.
There are some famous companies that have simply always been around for some people. As such, it is easy to view them as “too big to fail” in some cases. However, there are many factors that can contribute to a large business for bankruptcy. These factors can range from competitor innovation, to consumer trends, and even changing times. As such, there has been a recent trend of big companies finding themselves filing for Chapter 11 bankruptcy protection.
Here are seven famous companies going bankrupt right now, after recently finding themselves in enough trouble to file for bankruptcy:
1. Sears Company: Going Bankrupt since October 2018
In recent times, the biggest news headlines have been dominated by the spectacular fall of Sears, one of the most famous companies going bankrupt right now. Once a retail giant, Sears was around for 125 years in total before shuttering hundreds of stores in 2018 and eventually filing for bankruptcy in October of the same year. It seems as if Sears was simply a victim of the times, as retail stores that fail to properly adjust to the modern age are left behind.
2. Claire’s: Going Bankrupt since March 2018
If you have been paying attention, shopping malls are dropping like flies in most cities. Once a haven for groups to hang out and convenient shopping hubs for those who wish to get everything they need in one place, shopping malls are facing foot traffic starvation due to many factors of the modern day.
As such, the numerous shopping chains that thrived within shopping malls are also in trouble. To be more specific, the jewelry chain known as Claire’s. As people stopped going to shopping malls, the sales of the jewelry company dropped sharply. This caused Claire’s to file for bankruptcy in March 2018.
3. Mattress Firm: Going Bankrupt since October 2018
Unfortunately, this once famous mattress company is going bankrupt right now. Mattress Firm supplied many people with a comfy place to sleep, but just couldn’t keep business going well enough to remain successful. In October of 2018, the company filed for bankruptcy and shuttered 200 store locations immediately. This was followed by several hundred more store closing over the following months.
The store has managed to claw its way back from bankruptcy momentarily, but there is still a long, hard fight ahead for the bedding chain.
4. Brookstone: Going Bankrupt since August 2018
Another apparent victim of the shopping mall crash, Brookstone was known for luxury tech products that make great gifts for that one person that you don’t exactly know how to shop for. By placing itself in many shopping malls in many cities, Brookstone was able to advertise products such as massage chairs easily.
With their main sales venues in jeopardy, the success of the chain plummeted pretty quickly, leaving it in a tough situation. This led to a filing for bankruptcy protection in August of 2018. The famous company is going bankrupt right now. They are still fighting to find footing in the new age, but the future looks a bit grim as of right now.
5. David’s Bridal: Going Bankrupt since November 2018
There are cases wherein consumer trends can severely affect a company’s success. A good example of this would be David’s Bridal, a wedding-gown retailer that served many brides-to-be for many years. The source of the company’s issues seemed to be a trend that has been driving people towards casual wedding dresses, which is decidedly against the retailer’s best interests.
David’s Bridal filed for bankruptcy in November of 2018, but did not close any of it’s 300 hundred store locations.
6. Remington: Going Bankrupt since March 2018
The American firearms manufacturer has had it’s fair share of trouble in recent times. Debts have increased for the company, sales have dropped due to recent consumer trends, and various lawsuits against the company have forced Remington Outdoor into a corner.
This famous company is going bankrupt since March of 2018. However, the business was released from said bankruptcy in May of the same year, allowing them to put a restructuring plan into place that alleviated a staggering $775 million of debt. Time will tell if the company is able to make a comeback.
7. Toys R Us: Going Bankrupt since September 2017
One of the biggest threats to the modern retailer is online retailers. Toys R Us, the beloved toy store, has been struggling with debt since a leveraged buyout in 2005. While the company put up a good fight in the years following 2005, the titanic rise of online retailing spelled doom for the toy retailer.
As people realized that simply ordering toys online is much more convenient than a trip to the store, Toys R Us was forgotten by many. This ended with a filing for bankruptcy in September of 2017.
While the retailer had hopes for a strong holiday season, it ultimately decided to close all of its stores in March of 2018.