For different reasons, be it sustained inflation, changes in habits and adjustments to which the population had to get used, Several companies, especially fast food, have suffered in 2024 to such an extent that they had to declare bankruptcy. Some of them are surprising for having been of the most important in the United States.
One of the most affected sectors were the retail stores. At the end of the boom period that existed during 2021 and 2022 when consumers bought furniture, televisions and clothing, these types of businesses were strongly affected. By November 2024, more than 7,100 stores had already closed according to research company CoreSight.
Red Lobster
Top companies that went bankrupt in 2024
Whether it was due to customer habits, the skyrocketing inflation in the United States, or the impoverishment of the majority of the population, there were some companies that suffered more than others.
Big Lots
The consumables, electronics/accessories, furniture, hard, seasonal and soft home goods company filed for bankruptcy in September, after previously warning it had “substantial doubts” about its survival. Its deal to sell itself to a private equity firm fell through and it will soon close its remaining 963 stores.
Bowflex
The maker of home gym equipment filed for bankruptcy in March. It emerged from Chapter 11 a few months later, signing an agreement with a Taiwan-based company to “acquire substantially all of the assets” for $37.5 million in cash.
Express
One of the once fashionable shopping centers filed for bankruptcy in April after suffering continued problems with its product offering that did not excite shoppers. Nearly 100 stores closed and the company, which also owns the Bonobos brand, was sold to a consortium led by WHP Global in June.
Joanne
The 81-year-old fabric and craft retailer filed for bankruptcy in March, a victim of customer spending cuts, including on fabric and craft materials and supplies.
LL Flooring
The home goods retailer, formerly known as Lumber Liquidators, filed for bankruptcy in August. It was affected by the adjustment that most clients made when remodeling their homes and by the decline in the sale and construction of properties. After initially announcing the complete closure of its 94 stores, a private equity firm bought and saved the company.
Party City
It filed for bankruptcy in December, for the second time in less than two years. As a result, Party City will close its nearly 700 locations early next year. Inflationary pressures on product costs, which reduced consumer spending, according to its CEO, Barry Litwin, as well as an outstanding debt of US$800 million were lethal for the firm.
Red Lobster
After being one of the most successful companies selling shrimp accessible to the public, the company filed for bankruptcy in May. Years of underinvestment in marketing, food quality, service and restaurant improvement undermined the chain’s ability to compete with growing fast-casual chains. After closing more than 100 locations, Red Lobster emerged from bankruptcy in September thanks to a new owner and management that is already changing the menu.
Spirit Airlines
The yellow low-cost airline filed for bankruptcy in November due to mounting losses, unaffordable debt, increased competition and an inability to merge with other airlines. However, he stated that thanks to bankruptcy and negotiations with creditors he will be able to emerge at the beginning of next year with reduced debt and greater financial flexibility.
Stoli
One of the best-known vodka brands filed for bankruptcy in December. It suffered several setbacks, including slowing demand for spirits, a major cyberattack that crippled its operations, and several years of fighting Russia in court.
TGI Fridays
The American casual dining restaurant chain, known for its “flair,” filed for Chapter 11 in November, after years of dealing with a shrinking presence and declining customer base. The consequences of the covid-19 pandemic were the “main driver of our financial challenges,” stated its CEO.
Source: Ambito

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