With financial crisis looming over America (and the world) these days, and long lasting companies such as Circuit City, Goodys, Linens N' Things and Joe's closing their doors after many years, you have to wonder, who will be next? Well, here are 10 companies that may not live out 2009.
Blockbuster (BBI, 60,000 Employees)
Blockbuster has been on the slide for years now, ever since the explosion of Netflix to be exact. Netflix and other digital distribution brands(such as On Demand services) have eaten up tons of the customers Blockbuster had desperately tried to hold on too. And while they have tried to get into these services themselves...it always appears to be to late to have a true affect. Blockbuster's real problem is that it operates far to many stores that no one uses.
Six Flags, Inc. (SIX, 30,000 Employees)
Six Flags, Inc. stocks will be dropped off the New York Stock Exchange this month (April 20, 2009), a decision the company will not appeal. The company sold off many of it's sites in 2007 after increased financial misfortune. Still, this did not halt the slide of their stocks at all, leaving the company in an even worse financial disaster, and with debt payment due in August of 2009, the company may be forced to pay in default to many investors.
Krispy Kreme (KKD, 5,000 Employees)
Krispy Kreme exploded in the 90's. Opening numerous locations all over the country, and, for a time, it entranced America with it's new formula of heating donuts before eating them at home. It was a neat idea, and the donuts sure were good, but the prices were not. After the rapid expansion the company began to lose money, and has done so consistently now for 3 years. With people less willing to spend on over-expensive pastries this year, and the company due in for key payments, it will be an interesting year for the donut company. One that could, potentially, break them.
Midway Games (MWYGQ, Fewer Then 500 Employees)
One of the most distraught video game developers left in existence(after the collapses in late 2008), Midway Games continues to squander in Chapter 11 bankruptcy. The company first began financial downturn in 2004, after a massive spending spree in which they acquired many little used development studios, and the year was finished off with a 20 million dollar operating loss. The company has since lost it's place on the New York Stock Exchange, and has held operating losses for the last 4 years. The company was sold to a private investor near the end of 2008, and then officially filed for Chapter 11 bankruptcy a few months later. The company has little hope of ever escaping this year without a video game eschew miracle, as the companies debts will catch up to them midway through the year.
Rite Aid (RAD, 100,000 Employees)
With nearly $6 billion in debt as of March this year, and declining revenues(down nearly 2%), you have to wonder where the line will break for Rite Aid. In 2007 the company made the transition of several Brooks Eckerd stores into Rite Aids, these stores had been bought that same year for nearly $3.4 billion dollars, and yet these were the stores posting the worst losses for Rite Aid in 2008(net loss of 1.1 billion in 2008, combined). Rite Aid claims that this is happening to every other retailer(true for the most part), and that it has hit them particularly bad because of the integration of the Brooks Eckerd stores. That's a great definition of why it's happening, but how exactly do you plan to fix it?
