Welcome to Top10Archive! Whether due to bad decisions, lack of continued
public interest, or economic turmoil, some companies, regardless of how long they’ve
been around, wind up taking a dive. Utilizing a mix of trends and the Altman Z-Score,
a figure based on working capital, retained earnings, and other factors against total
assets and liabilities, this Archive compiles the top 10 companies the general public has
known and loved that are likely to soon disappear. 10. J.C. Penney Company
From stirring up controversy with One Million Moms for featuring an openly gay spokesperson
to facing backlash in the form of a 25% decrease in sales for openly advertising same-sex marriage,
J.C. Penney has had a rough go of things over the past five years. Despite 90 store closings, there was no rebounding,
but a 4.5% increase in sales from 2015 to 2016 provided some light at the end of the
tunnel. Sadly, that light is dimmed by the grim reality
that any rebound still leaves the company’s numbers paling in comparison to 2006, the
last time it had roughly the same number of stores. Though its stock peaked in the 1st quarter
of 2016, prices are slowly returning to those abysmal figures; and with an Altman-Z Score
of .80, J.C. Penney has the potential of being another casualty of the times. 9. New York & Company, Inc. When there’s little hope for an upswing
in a company’s future, they’ll often turn to tell-tale actions that signify business
isn’t quite booming. For New York & Company clothing retailer,
those actions included announcing upwards of 12 store closings and the conversion of
50 current locations into outlet markets. The New York-based retailer faced backlash
from an emphasis on bargain shopping, which caused a drastic drop in stock pricing in
2009 from $15 per share down to around $5 per share. Since then, the company has struggled to break
even $4 per share, with its peak in 2016 only hitting $3.75. 3rd quarter sales in 2016 came in at a .7%
decrease. While higher-ups are focusing on a means of
salvaging the numbers, expectations for the 4th quarter included a continued decrease
in net sales. 8. Isle of Capri Casinos Inc. In August of 2015, the chain announced the
closing of one of its oldest casinos in Natchez, Mississippi, leading to a sharp drop in stock
pricing in the 4th quarter of 2015. Though it saw an increase in net income in
the 2nd quarter of 2016, there was still a 1% decrease in revenue when compared to a
year prior. As of September of 2016, the Reno, NV-based
Eldorado Resorts announced plans to purchase the Isle of Capri casinos, and though that
reveal boosted stock pricing from a low of $11 to over $20 per share, it’s not a finalized
acquisition and, as history has shown us, anything can happen. Even with the acquisition looming, the fate
of the Isle of Capri Casino chain is a gamble the house may not want to bet on. 7. Supervalu Inc
Supervalu Inc, a large food distributor and blanket corporation for Cub Foods, Shoppers
Food Warehouse, Shop ‘n Save, and a range of other supermarkets, faces hard times with
a calculated Altman Z-Score of -1.43 as of June 2016. The closing of 60 stores in 2012, the sale
of one of its larger chains, Save-A-Lot, for $1.365 billion and drastic drops in stock
prices at the tail end of April 2015 and January 2016 all spell an uncertain future for this
once-popular grocery chain. Though stock pricing was affected slightly
by the Save-A-Lot sale, the grocer has been unable to break its stock price high for 2016,
which was just under $6 per share in April. 6. TripAdvisor
TripAdvisor is a fine source for looking up reviews of restaurants, but did you know it’s
also an online travel agency? If not, you’re far from alone. Competing against established OTAs like Expedia,
Priceline, Orbitz, and, TripAdvisor may have taken a misstep by focusing on joining
the saturated market of electronic reservationists. In the 3rd quarter of 2016, TripAdvisor saw
only a 1% revenue increase from 2015 and a sizable decrease in net income, earnings per
share and free cash flow. Without the ability to directly make steady
money from online booking, the website is forced to rely on click-based advertising
– which, unfortunately, is factored into that minimal 1% increase. 5. Avon
Though widely accused of being a pyramid scheme, Avon has been a successful manufacturer and
direct retailer of feminine beauty products and household goods. What started as a simple door-to-door tactic
by David H. McConnell, erupted into a full-fledged company that expanded well beyond New York
City. Despite years of success, it appears the make-up
mogul may be close to the end of the line. In 2013, the company cut over 1500 jobs worldwide
and pulled out of South Korea and Vietnam while simultaneously reducing its market in
the United States. The Wall Street Journal reported in 2015 that
Avon was looking at completely shutting its U.S. branches after an 18% revenue drop the
year prior. There has also been an 18% reduction in Avon
Ladies, the company’s sole source of income. 4. Sprint Corp. And they just got the former Verizon guy as
their spokesperson! With heavy competition in the mobile communications
industry, it’s not easy remaining on top as Sprint Corp. has been finding. In early 2016, the company sought to transform
itself and wound up cutting over 2,500 jobs after closing six customer care centers. Since 2014, over 6,000 jobs had been cut,
and though the company remains optimistic despite having been ranked fourth among national
carriers, an Altman-Z score of -.08 speaks a troubled future. According to analysts, one of the biggest
dilemmas Sprint may face is the ending of promotions that attracted many new customers
and stricter consumer credit policies, which would likely hinder signing on questionable
and low credit scores. Several possibilities that may help Sprint
achieve a greater free-cash-flow include its deals with cable companies or a merger with
T-Mobile. 3. Aeropostale
In early 2016, the teen apparel retailer sought protection from Chapter 11 bankruptcy in response
to the heavy hit taken by the fashion industry. Though its rivals, American Eagle Outfitters
and Abercrombie & Fitch, were able to adapt to the economic slump, Aeropostale was forced
to close 154 stores spread throughout the North American market. The downsize and bankruptcy protection were
moves made to stabilize operations, though disputes with an unnamed vendor, a $160 million
loan from Crystal Financial LLC, and the volatility of the teen fashion market may serve as detrimental
roadblocks on the return to positive revenue. Further assisting Aeropostale are American
mall operators, who provided $234 million in the 3rd quarter of 2016 to keep 230 U.S.
stores open. 2. Sears Holdings Corp. It seems like it’s been a long time coming,
but despite what the company told the public in July of 2016, Sears Holdings may be living
its final days. After a report by Business Insider claimed
that the K-Mart brand would be officially axed, Sears stepped forward and denied the
claims, though it’s difficult to deny the 7.3% drop in sales in 2015 and the lack of
any gain since 2010, where it saw a .8% sales increase. With hundreds of K-Mart and Sears stores closing,
the company may be forced to turn to selling its most popular assets – Kenmore, Craftsman,
and DieHard appliances and tools. Though there may be a focus on increasing
profitability, Sears’ stock figures have remained consistently in the negative and
its Altman-Z score hovers around -1.48, putting it at risk of closure. 1. The Container Store
Offering overpriced storage solutions when companies like Ikea, Wal-Mart, and Target
provide cheaper and more accessible options may not have been the best business model
for The Container Store. In less than a year, stock pricing plummeted
from over $20 to under $4 per share, and though it had slowly climbed back up to around $7
per share in late 2016, the company’s long-term outlook is looking dire. In the 2nd quarter of 2016, the company saw
a marginal increase of .3% of consolidated net sales and a .9% increase in net sales
in its retail stores, while its 3rd party Elfa International AB sales were met with
a 6% decrease. Will a downward trend continue and will an
Altman Z-Score of -1.59 prove accurate for the fate of The Container Store?

24 thoughts on “Top 10 COMPANIES That Will SOON DISAPPEAR

  1. When I want to buy something I don't think Amazon at all, I go to eBay. Try buying 14th century antiques on Amazon ; good luck with that.

  2. So, you think that having "An openly gay spokesperson" is the reason JC Penney is struggling? You're very homophobic. I dismiss everything else you say in this video.

  3. I never liked malls, most stores, most mom and pops stores, and have always catalog shopped. I love online shopping and the prices. I don't want to; drive to a store, park, deal with salespeople, have to wait for a salesperson if I do need something, have to deal with others people-shoppers, groups of people not shopping just hanging around the store, poorly behaved children, poorly behaved adults, lines, check out. I like point, click, pay, 2 day FedEx or UPS.

  4. Sears, J.C.P., RADIO SHACK, CIRCUIT CITY, K.B.TOYS. JUST TO NAME A FEW. They all shot themselves in the foot years ago. Had people at the top that did not know or give a rip about the company. All of them wanted was $$$$$$$$$$$ for them. Not the workers. They looked for the cheapest way to run the business. I worked 42 years in retail. I saw this all the time. The stores lost leadership. People who know what was working was let go. Bring in fresh blood that did not know anything about the company. It is in all stores today. They will not stay in business long. Today the workers want min wage of $15. He. They have no work life other on the iPhone. As them a question about this product and they look at you. Then they say here is the book about it. Customer service is not them. Some stores do but that is far and few. Sorry if I am on my soapbox but that's the way it is.

  5. Container store…..
    Well that's got to be the greatest idea since selling toilet paper thats only been used on 1 side!

  6. Something must be done. Thousands of people out of work, with no money to feed their kids. The government should do a better job for the People. In my country, online sales are small, and, for example, when ciber day and black friday come around. we buy online from established retailers, not from Ebay, etc..

  7. That's a very dumb reason to boycott a company.

    JCPennys runs an ad to appeal to a wider demographic and people get butthurt because they don't believe in gay marriage.

    It's a thing and families like this are more and more common for better or worse.

    Not everything is about you or for you. It's pathetic behavior period.

  8. Sears has been dead in the water years ago. How old is this.

    Walmart and Target are next. Sadly Brick and Mortar is dying and I hate that too.

    I prefer brick and mortar on the weekend or my day off.

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