With the recession just barely behind us, Americans watched as powerhouse companies that had been around for generations collapse under the weight of mounting debt and low returns. Readers of our blog, as well as the rest of the nation, were especially surprised when Hostess announced that it was closing its doors after 82 years of operation because of bankruptcy.
So now the question on nearly everyone's minds is: what will 2013 hold for businesses and what big names are we likely to see vanish by the end of the New Year?
According to some financial experts, after scrutinizing American companies based on sales, customer base, market relevance and overall fiscal health, there are approximately six more brands consumers could see file for bankruptcy in 2013.
Two of the more surprising companies analysts have black listed for failure were JC Penney and American Airlines. According to many experts, JC Penney's downfall could have been the introduction of "everyday low prices" which replaced its normal coupons and sales promotions. American Airlines, whose parent company filed for bankruptcy in 2011, has been the center of buyout rumors for months now as many of its customers look to cheaper flights in the post-recession economy.
Mitsubishi Motors in North America and BlackBerry may also join the ranks as they fail to meet sales quotas and struggle to keep up with their competitors. Avon could be close behind, say many experts, who explain that with earnings in decline and the recent heat from investigators surrounding a bribery probe, some critics say that it'd be a surprise if it wasn't bought up in 2013.
With print media in decline, even Martha Stewart may not be safe from bankruptcy when it comes to her magazine. Some critics attribute her 30 percent loss in advertising to her fan base who may have lost faith in her after her insider trading scandal and time in prison.
Source: Yahoo Finance, "6 Brands That Will Likely Disappear in 2013," Farnoosh Torabi, Dec. 24, 2012