- Blockbuster
There’s good and bad news for Blockbuster. For the third year in a row, it’s on the 24/7 list. However, it’s still on the list, meaning it hasn’t gone under yet. After leading the nation in rental sales for two decades, Blockbuster has been buried by Netflix, RedBox and videos-on-demand. While Blockbuster may be able to re-invent itself as an internet and free-standing vending machine retailer of videos, its stores will soon be gone just like those of former competitor Movie Gallery.
- British Petroleum
When I saw a story about a mysterious oil slick that has suddenly popped up off the coast of Louisiana, I wasn’t baffled. I instantly thought of BP. Whether or not BP caused the problem, my negative perception of the company caused by its mishandling of the massive oil spill that endangered the entire Gulf of Mexico ecosystem made me jump to the conclusion. The company still faces huge fines from the Deepwater Horizon spill, and many Americans have stopped buying its gas. The company might attempt to re-brand itself in the United States in order to put the negative perception behind it. However, a rose by any other name would smell just as foul.
- Reader’s Digest
People simply don’t read as much as they used to, and they certainly don’t read as many magazines. Thus, a company like Reader’s Digest that owns hundreds of niche magazines in addition to the Digest, as well as book and music publishing divisions, is in big trouble. It filed for Chapter 11 in 2009 but managed to bounce back in 2010. The company is still on the ropes, and the only thing helping it avoid the knock-out is strong sales in Europe, where people apparently still read.
- Dollar Thrifty Automotive Group
While not rumored to go under, Dollar Thrifty is for sale. However, competitors are only interested in increasing their share of the market and not necessarily in keeping the business going. Dollar Thrifty has compiled $1.5 billion in debt, it makes only $27 million per quarter, and it has only 95,000 cars in its fleet – less than a quarter of Hertz’ inventory. With less people traveling due to the economy, the rental car industry can simply not sustain several successful businesses anymore.
- T-Mobile
D’oh! Between the time this article was written and published, AT&T bought T-Mobile. Apparently, consumers can’t hear T-Mobile now, and the folks at 24/7 Wall St. knew what they were talking about.
- RadioShack
Founded in 1921, it’s one of the oldest retailers in the country, but it suffers from negative brand association due to the perception of its products being cheaper and lower quality. Not in danger of going out of business, RadioShack could likely be bought out by Best Buy, which enjoys a much better perception in the public eye.
- Zale’s
Zale’s filed for bankruptcy in 1992, and while it’s never gone completely under, it’s been running on fumes ever since. Discount retailers like Wal-Mart and Kohl’s have simply buried Zale’s. The company lost $12 million on $360 million in revenue in the second quarter of 2010, and it’s made the Forbe’s list of endangered retailers.
- Moody Corporation
The company will likely not survive allegations that it rigged its mortgage ratings in order to generate business. Both civil lawsuits and government intervention will likely close this 100-year-old company’s doors. The best future Moody’s employees can hope is being sold off to another rating company.
- Kia Motors Corporation
In a time when many automakers are dumping their underperforming brands (see Oldsmobile, Pontiac, Saturn and Mercury for more information), the red-headed step-child of the Hyundai Corporation could be the next in line. Its economy line has not been performing nearly as well as the highly-rated Hyundai, and the Korean car maker could cut bait and close shop.
- Merrill Lynch
Bank of America has purchased Merrill Lynch, but it’s likely to re-brand it like other companies did with competitors E.F. Hutton and Prudential. Expect Merrill Lynch to become Bank of American Investment Management. What an original name!
