Who'll Go Bankrupt Next?

Circuit City, Linens 'n Things, and Levitz are all victims of the economic crisis - and the question in everybody's mind is: who's next?

Yahoo! Finance has a somber article about 15 companies that are in such
precarious financial conditions that they might not survive 2009. For example:

Sbarro. (Privately owned; about 5,500 employees). It's not the pizza that's the problem. Many of this chain's 1,100 storefronts are in malls, which is a double whammy: Traffic is down, since consumers have put away their wallets. Sbarro can't really boost revenue by adding a breakfast or late-night menu, like other chains have done. And competitors like Domino's and Pizza Hut have less debt and stronger cash flow, which could intensify pressure on Sbarro as key debt payments come due in 2009.

Krispy Kreme. (KKD; about 4,000 employees; stock down 50%). The donuts might be good, but Krispy Kreme overestimated Americans' appetite - and that's saying something. This chain overexpanded during the donut heyday of the 1990s - taking on a lot of debt - and now requires high volumes to meet expenses and interest payments. The company has cut costs and closed underperforming stores, but still hasn't earned an operating profit in three years. And now that consumers are cutting back on everything, such improvements may fail to offset top-line declines, leading Krispy Kreme to seek some kind of relief from lenders over the next year.

http://finance.yahoo.com/news/15-Companies-That-Might-Not-usnews-14279875.html


Newest 5
Newest 5 Comments

I am still waiting for krispy kreme to come to my town. We used to have a Winchell's but now it's just generic donut shops with names like Happy Donut, owned by the same family that has a manicure shop and a dry cleaners next door.
Abusive comment hidden. (Show it anyway.)
All these companies expanded too fast, bought out my favorite stores and closed or forced out locally run family owned stores, and carried crap merchandise for years.

No sympathy.
Abusive comment hidden. (Show it anyway.)
@Dave: How insightful & on-topic, tell us more! So tired of the Haters.

Now, on that list can Blockbuster really claim it's all due to the economy? They were too slow & stupid to adapt to the times, let alone survive much longer regardless of any other factors. Kinda sucks to think Six Flags could go under, so many good times had at the one in Maryland. If they last through this Summer I'll be sure to take my nephew, just in case it's the last time.
Abusive comment hidden. (Show it anyway.)
@ skidworth: You're in Columbia, SC? So am I - and while I would completely agree with you about Columbiana Center (actually I stay away from it because the whole area is TOO congested), I wonder if you've checked out Richland Mall lately - I was there this past Sunday and even after the stated opening time, of the woefully few stores still left only Barnes & Noble even bothered opening ... very eerie. As I recall, the last time I was at Dutch Square it was pretty darned empty, too. Those dying companies are definitely around, I think ...

(and I've just gotta say, of the companies on that yahoo list the only one I'd truly mourn would be Krispy Kreme; I don't go there often but man, there are some times you just NEED one of their doughnuts!)
Abusive comment hidden. (Show it anyway.)
Commenting is closed.


Email This Post to a Friend
"Who'll Go Bankrupt Next?"

Separate multiple emails with a comma. Limit 5.

 

Success! Your email has been sent!

close window
X

This website uses cookies.

This website uses cookies to improve user experience. By using this website you consent to all cookies in accordance with our Privacy Policy.

I agree
 
Learn More