Our Pennsylvania readers might be familiar with the companies JC Penney, Avon and American Airlines for a myriad of reasons. Something that may not be so familiar to consumers is that these three companies are among a list of brands that is facing bankruptcy and are projected to disappear completely in 2013.
This list was put together by a financial news site after researchers analyzed American companies based on their market relevance, overall fiscal health, sales and consumer base. The accuracy of the list, made by 24/7 Wall St., was tested in 2011 when they predicted that automaker American Suzuki, mobile carrier MetroPCS and Current TV would all be brands that disappear. Sure enough, all three companies had fizzled out by 2012.
JC Penney reported sales to be down by more than 20 percent from last year and internet sales have dropped more than 33 percent. These plummeting numbers are part of the reason this company ended up on the list of brand names to disappear in 2013. Another name on that list is Avon, the beauty brand that allegedly bribed overseas third parties. Though the company didn’t sell to a fragrance company last year, they will likely be taken over this year.
American Airlines has been struggling since filing for bankruptcy in 2011, and things don’t seem to be looking up for the shrinking mid-sized carrier. Another brand that you may be familiar with that’s slated to go under is Martha Stewart Living magazine, which lost 30 percent of its advertising in 2011.
Clearly, corporations going bankrupt is different than personal bankruptcy, however, no matter the amount of money involved, an experienced attorney may still be something to look into. Financial planning is not something everyone does well, just look at these companies, but it’s important to remember that there is help.
Source: yahoo.com, “Brands That Will Likely Disappear in 2013,” Farnoosh Torabi, Dec. 27, 2012