Which Brands Will Disappear in 2015 and Why?
The folks over at 24/7 Wall St. put together an interesting list of predictions around companies that are going to disappear in 2015. Their major criteria used for evaluation were:
Declining sales and losses;
Disclosures by the parent of the brand that it might go out of business;
Rising costs that are unlikely to be recouped through higher prices;
Companies that are sold;
Companies that go into bankruptcy;
Companies that have lost the great majority of their customers
Operations with withering market share.
Before reading the list below take a moment and think about which companies YOU think will go out of business next year, then you compare your answers with the ones below.
Here are the predictions from 24/7 Wall St. You will find the name of the company followed by “why” they are expected to disappear in 2015.
Lulumelon
Why?
Net income collapsed from $47 million to $19 million
Big issue around their pants being see-through
CEO Christine Day left the company
Founder and chairman stepped down
Stock down 50% from peak in June 2013
DirectTV
Why?
Likely acquisition by AT&T
Hillshire Brands (Ballpark Hotdogs & Jimmy Dean Sausages)
Why?
Acquisition by Tyson Foods
Zynga
Why?
Daily active users in Q1 2014 down 50% to 28 million
Lost $61 million in Q1
Stock down by 45%
Alaska Air
Why?
Potential acquisition by Delta
One of the few remaining independent airlines left
Russel Stover (third largest candy maker in America)
Why?
Rumored Hershey acquisition but could be someone else
Shutterfly
Why?
Attractive acquisition target
Shares down 18% over past 12 months
Modest 2.55 million customers in first quarter of 2014
Time Warner Cable
Why?
Comcast acquisition pending government approval
Blackberry
Why?
In 2008 had almost 20% of global smartphone market now below 1%
Bad sales of recent two new phones: Z10 and Q10
Revenue dropped $966 million in most recently reported quarter
Aeropostale
Why?
Revenue fell 12% in most recent quarter to $396 million
Same-store-sales down 13%
Losses increases from $12 million to $77 million
Stock price down 85% in last five years
Ended Q1 with only $24.5 million in cash, lowest since 2000
So there you have it, all of these companies are expected to disappear sometime next year and all of them have become known brands in their respective industries. Do you have any other companies you would add to the list, if so why?
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