Business
No more lobsters and parties: 10 big companies that filed for bankruptcy in 2024
From familiar restaurant chains to popular retailers, many household names faced financial turmoil.
The year 2024 has been a tumultuous one for the business landscape, marked by economic uncertainties and shifting consumer behaviors that have left many once-thriving companies struggling to stay afloat. As inflationary pressures, rising interest rates, and lingering effects from the covid-19 pandemic continued to affect spending habits, even well-established brands found themselves unable to navigate these choppy waters.
Red Lobster
The world’s largest seafood chain filed for Chapter 11 bankruptcy in May, with over $1 billion in debt and less than $30 million in cash reserves. Red Lobster’s financial woes were attributed to a challenging macroeconomic environment, underperforming restaurants, and fierce competition in the sector.
Party City
Once a go-to destination for celebration supplies, Party City succumbed to financial pressures and filed for bankruptcy.
Spirit Airlines
The largest US budget carrier filed for Chapter 11 bankruptcy in November after accumulating over $2.5 billion in losses since 2020. Spirit Airlines faced mounting debt and struggled to recover in the post-pandemic travel landscape.
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Big Lots
The discount retailer filed for bankruptcy in September, citing declining sales and profitability since the covid-19 pandemic.
Joann
The arts and crafts retailer filed for bankruptcy early in 2024, citing rising debt and financial troubles intensified by decreasing sales and growing competition. Joann’s struggles reflect the broader challenges faced by brick-and-mortar retailers in the digital age.
Express
The fashion retailer sought bankruptcy protection in April due to financial strain, accumulating debt, and stiff competition from other retailers. Express was delisted from the New York Stock Exchange earlier in March, signaling its financial troubles.
The Body Shop (US Division)
The US division of The Body Shop filed for bankruptcy in March, opting for Chapter 7 bankruptcy due to financial difficulties and reduced sales. This development marked a significant downturn for the once-thriving beauty and fragrance retailer.
99 Cents Only Stores
The deep-discount retailer filed for bankruptcy in April, citing ongoing financial difficulties exacerbated by the COVID-19 pandemic. The company grappled with increasing debt and falling sales, leading to its eventual downfall.
Chicken Soup for the Soul Entertainment
The owner of Redbox filed for bankruptcy in June due to substantial debt and falling revenues. The company faced challenges in maintaining profitability amidst a tough media environment and growing competition from online streaming giants.
rue21
The fashion retailer declared bankruptcy following intense competition from internet merchants. rue21′s struggles reflect the wider obstacles faced by traditional retailers in adapting to the digital shopping landscape.
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