Well-known companies go bankrupt in 2024

By Jordan Valinsky, CNN

New York (CNN) — This year was brutal for a number of well-known companies and their bottom lines.

As inflation continued to rear its ugly head, consumers slashed their discretionary spending, tilting some companies to file for bankruptcy. Other brands fell victim to changing trends or even more malicious ailments, like cyberattacks.

At least 19 companies have cut a combined 14,000 jobs because of bankruptcies, according to Challenger, Gray & Christmas, an outplacement services firm. Some of the popular brands affected include LL Flooring, Red Lobster, Spirit Airlines, TGI Fridays and Tupperware.

Notably, retail closures have picked up this year because the sector’s sugar high of 2021 and 2022 — when consumers were buying new furniture, televisions and clothing — has ended. There have been more than 7,100 store closures through the end of November, according to research firm CoreSight — a jump of 69% compared to the same time a year ago.

Of course, filing for bankruptcy doesn’t necessarily mean a business is going bust. Companies tend to use the Chapter 11 process to wind down some operations, tackle mounting debt and save on costs by closing locations.

Here are some of the most notable bankruptcies of 2024, listed alphabetically:

Big Lots

Big Lots filed for bankruptcy in September, after previously warning that it had “substantial doubt” about its survival. The discount retailer recently announced that its deal to sell itself to a private equity firm had fallen through and it will soon close its remaining 963 locations.

Bowflex

Perhaps best known for its late-night informercials, the at-home gym equipment maker filed for bankruptcy in March. It emerged from Chapter 11 a few months later, signing a deal witha Taiwan-based company to “acquire substantially all of the assets” for $37.5 million in cash.

Express

The once-trendy mall staple filed for bankruptcy in April after consistently struggling with continued missteps over its merchandise mix that failed to get shoppers excited. As a result, nearly 100 locations closed and the company, which also owns the Bonobos brand, sold itself to a consortium led by WHP Global in June.

Joann

The 81-year-old fabric and craft retailer filed for bankruptcy in March, falling victim to customers cutting back on spending, including on fabric, arts and supplies materials. Joann’s stock was delisted from the Nasdaq and the company became privately owned, slashing its debt and keeping all 850 stores open.

LL Flooring

The home retailer formerly known as Lumber Liquidators filed for bankruptcy in August. The retailer was hammered by budget-conscious customers tightening their wallets on pricey remodels 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.

Party City

The four-decade-old retailer filed for bankruptcy in December, marking its second time in less than two years. As a result, Party City will close its roughly 700 locations early next year. The New Jersey-based company faced inflationary pressures on product costs, which reduced consumer spending, according to CEO Barry Litwin, as well as $800 million in outstanding debt.

Red Lobster

The restaurant chain that brought affordable shrimp and lobster to middle-class America and grew to become the largest seafood restaurant chain in the world filed for bankruptcy in May. Years of underinvestment in its marketing, food quality, service and restaurant upgrades hurt the chain’s ability to compete with growing fast-casual and quick-service chains. After closing more than 100 locations, Red Lobster emerged from bankruptcy in September thanks to a new owner and leadership that’s already changing the menu.

Spirit Airlines

The yellow-hued budget carrier landed in bankruptcy in November because of mounting losses, unaffordable debt, increased competition and the inability to merge with other airlines. Spirit said that because of its bankruptcy and negotiations with existing creditors, it will be able to emerge early next year with reduced debt and increased financial flexibility.

Stoli

Stoli Group USA, the owner of the namesake vodka, filed for bankruptcy in December. A number of things went wrong for the unit, including a slowing demand for spirits, a major cyberattack that snarled its operations and several years of fighting Russia in court.

TGI Fridays

The American casual dining chain known for its “flair” filed for Chapter 11 in November after years of dealing with a shrinking footprint and a decline in customers. TGI Fridays said in a statement that fallout from the Covid-19 pandemic was the “primary driver of our financial challenges” and that it will use the process to “explore strategic alternatives in order to ensure the long-term viability of the brand.”

True Value

The 75-year-old hardware store brand filed for bankruptcy in October and ended its legacy by substantially selling its operations to a rival. In court filings, True Value said it faces a significant cash crunch as the housing market has stalled and consumers have become far more picky about discretionary purchases like hardware. (True Value stores are still open because they are not part of the bankruptcy proceedings).

Tupperware

The kitchen brand, known for its plastic food storage containers, filed for bankruptcy in September after years of falling popularity and financial troubles. In late November, Tupperware’s brand name and intellectual property were bought by a private equity firm that aims to keep the company operational.

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