8/7/2023 0 Comments Poor decision makingHailed as one of the most popular department stores of the 1980s and 1990s, Mervyn’s was once a West Coast empire. That - coupled with the drop-off in music and movie sales due to subscriptions, apps, and other modes of consumption - led to Borders closing its doors and handing over its assets to Barnes & Noble in 2011. After all, from 2001 to 2008, they basically helped build Amazon’s book sales section. The company’s stakeholders all had different visions for where the industry was heading, they didn’t latch onto their own digital model – e-readers, apps, or online purchasing - and all of their options went out the window when they were surpassed by their competitors. They never recovered.Īn early user of Amazon for online sales, Borders effectively put itself into bankruptcy. In 1999, however, they aired a Super Bowl ad that was both racially and culturally insensitive. Just seven years prior, it had been hailed as one of America’s fastest growing companies by Fortune magazine. staff and the cutting off of the Canada offices altogether.Īfter 27 years, Just for Feet filed for Chapter 11 and was sold off in 2000 before closing its doors for good in 2004. The restructure comes from over $20 million in losses by HuffPost last year, which inspired a 30% reduction in U.S. And with the recent acquisition from Verizon Media Group, BuzzFeed chose to lay off 70 more staffers just this March. Though the company - under BuzzFeed as of February - has yet to technically go bankrupt, its propensity to lay off staffers is widely side-eyed in the industry. There is one remaining location, in Bend, Oregon. The yellow and blue logo undoubtedly directly inspired the advancements in entertainment technology that led to its demise.īlockbuster’s short-lived subscription service and updated rental options couldn’t compete with newly developed applications and other technological advancements, so it folded in 2014. Speaking of entertainment, Blockbuster’s bankruptcy may have hit ’90s kids the hardest. JLRphotography / Shutterstock Blockbuster 28, 2020, MoviePass was no longer in operation. In 2018, long before the pandemic threw movie attendance into disarray, MoviePass ran a deficit of millions and never recovered. Competitors like AMC were updating their rewards programs at record speed, also pricing out some of the lucrative options for users. That is, until the unlimited options gave way to financial loss, as users went to more and more movies on MoviePass’ dime. Over time, new plan structures evolved, each confirming more and more benefits for the user. For a monthly fee, MoviePass allowed each subscriber to redeem three movie tickets. A subscription-based ticketing service for movies, it clunkily launched in 2011 and was developed into an app shortly thereafter for user experience reasons. This was a short-lived beauty of an app that truly benefited its customers. Even with the pandemic lurking, they haven’t faced financial fluster as of late. Between its November 2018 filing and January 2019, they shrank their debt by millions, emerged from bankruptcy, and made a couple of hefty investments that look to be suiting their brand these days. The wedding gown company filed for bankruptcy in November 2018, after in-store losses accumulated an insane amount of debt. Soft pink, 1980s-inspired-decor might lend to its losses, but we are willing to bet that all of the promotions, discounts, and sales may be at fault, as well.Īfter a leveraged buyout in 2012, the company struggled to make ends meet with over 300 franchises across North America. Sales came to a screeching halt, and JCPenney had to rethink its moment of truth.ĭavid’s Bridal hasn’t always had success when it comes to revenue. JCPenney chose to list its items at more fair prices.īut because they stopped putting discount stickers on everything - Why would they, when the vase that they would have originally marked as $20 was marked at its fair price of $10 already? - the American public thought they were no longer getting a deal. In 2012, the stores announced that they were no longer going to price things absurdly high and then mark them down repeatedly for people to feel like they were getting a deal.Īs most of us know, department stores put things on the floor at absurdly high prices, and you often aren’t buying an item for what it’s worth until it has been discounted multiple times. But even before bankruptcy, JCPenney was in trouble … because of the American public’s lack of common sense. It has gone in and out of appliance sales, ended a widely popular catalog subscription, rebranded and updated its stores, and even filed for bankruptcy. JCPenney has been through its fair share of ebbs and flows as a business over the years. Read on for some insane bankruptcy – and almost-bankruptcy – stories that will hopefully help to inform your decision-making process, especially when it comes to your career. These companies wasted millions because of their bad decisions.
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