Economic Crisis: Will These Companies Survive?
Something’s got to give for these major household names, or prepare to see a grave sight larger than the 90’s recession. An article published by Rick Newman on Friday February 6, 2009 by Yahoo Finance gave us a grim look at their financial future.
With consumers cutting back on spending, many of these companies are left holding the bill. Hollow malls and vacant sales floors echo back a Chapter 11 note. Meanwhile, some companies have to depend on a miracle to keep them afloat. Hopes are that these big names may rid themselves of debt, revamp and come up stronger than before. Unfortunately, many of these corporations do not have the funds required for a big recession fall out, such as the one we are dealing with today. Many have an overflow of debt and big interest dues pending payment this year. Refinancing loans and or acquiring new ones to assist in cash flow would be ideal in a thriving economy. With sales being at an all time low and credit companies playing it safe, what was once financially promising is now looking grim. Many of these big names below that were listed on I.C.U. were mentioned in an article written by Rick Newman whose main source was Moody’s Investors Service.
Rite Aid
Rite Aides large debt may prove to be the reason we may not see this big pharmacy branch again.
Claire’s Stores
A future debt default has this teen accessory store on shaky ground.
Station Casinos
A recent real-estate bust has Las Vegas on life support. This casino chain is soon to default on an interest payment.
Loehmann’s Capital Corp
This women’s discount clothing store offers up great prices that the public can no longer afford to pay. This current pocket drought questions Loehmann’s survival.
Chrysler
Economists believe this Detroit based company will absorb the $4 billion bailout money it’s been provided. Current contracts with Italian giant Fiat may prove to be fruitless.
Sbarro
Location, Location, Location, this mall based company had a good thing going when the economy was booming. Decreased traffic questions the strength of Sbarros survival.
Six Flags
A rocky financial history for this theme park stretches it’s life source to a breaking point in this coming summer season. Small crowds are no answer to a substantial debt due in 2010.
Blockbuster
Cable and internet companies pressure Blockbuster to make some serious changes. The competition is gruesome for an already ailing economic infrastructure.
Krispy Kreme
This is an overdistended donut chain that doesn’t make the cut. While the budgeting frenzy forces consumers to make do at home, Krispi Kreme will have no choice but to close shops and suck up expenses and interest payments.
Landry’s Restaurants
Landry’s is most famously known for it’s eateries. Rainforest Cafe where you can enjoy a unique dining and shopping experience is one of Landry’s divisions. It’s also operates Chart House and many more casual dining facilities. A take over deal from last June leaves this major chain $400 million in debt.
Sirius Satellite Radio
A previous merger with XM Radio has not given Sirius any serious boost. Failer to repay or refinance major debt in 2009 may force this company to embrace Chapter 11. Sirius attempted to use Howard Sterns talents to help promote themselves on the air waves.
Trump Entertainment Resorts Holdings
No one can escape the clause of recession. Not even a financial genius like Donald Trump. An attempt to sell one of the Atlantic City Resorts and pay off debt is currently in affect.
A few other names such as Dollar Thrifty Automotive Group, Bearing Point and Realogy Corp were also named on the I.C.U. list.
9 Comments
Wow, some of the names on this list came as a shock to me. It’s difficult to believe that Blockbuster would make the list. With more people staying in, I would think a video store chain would thrive in a poor economy. Again,. that shows the power of the internet. One that isn’t listed here is Circuit City. They’ve apparently gone belly up already.
Great research and beautiful layout, Sandra. Very interesting article.
Great article!
Very good research – a few shockers in the list! I pass a branch of Claire’s every day and it always seems to be full of people… but I guess they don’t sell too many high end things… I keep my fingers crossed for the school girls of the world who would no doubt see the closure of Claire’s as an apocalyptic event!
Impressive article. It’s hard to believe that some brands so familiar could disappear.
So many businesses are going belly up in this bad economy that I’m sure many more then these will go. I certainly hope I am wrong this time.
Its so true I know a few people who have gone out of business…
Good creativity in finding the pictures. You have shown me that there are smaller companies as well that are in bad condition. I am compared with the likes of Lehman, UBS, Citi, JPM etc.
I believe there are many small companies that will definitely survive. This reality makes me depressed slowly every day.
Great report!
It will be interesting to see what happens to these companies and other companies over the next year. Great article and information to match goo job..