15 Companies That Might Not Survive 2009

This is a scary article from Yahoo Finance about some big names in the consumer world that are really struggling. Many are household names, like Krispy Kreme, Rite Aid, Blockbuster, and Sirius Radio.

15 companies

Scary indeed Goombah

Scary, but I won't miss Sbarro's awful pizzas. I don't understand how they can go broke though because they have at least one in every airport and mall, and their slices are way overpriced.

I don't understand how Krispy Kreme is in such trouble. They have a far superior product to Dunkin Donuts, IMO, yet DD has a store ever 3 feet it seems, and I have no Krispy Kreme anywhere near me.

I agree, DT. Sbarro's pizza is terrible. It's like putting ketchup on a piece of cardboard, then sticking it under a heating lamp, and calling it pizza.

Dunkin Donuts consistently is voted to have some of the best coffee. If they are everywhere, then they get more volume of customers. That's the name of the game. McDonalds is very similar to Dunkin Donuts in that they may not have the best tasting burgers and food. But they are everywhere around the world, so more people eat there than Wendys and Burger King. Most of the DD also have a Baskin Robbins ice cream store attached. So they are getting a variety of customers: donut eaters and coffee drinkers in the morning and ice cream eaters the rest of the day, whereas Krispy only has the one market. Realistically, how many people are buying donuts after 12 pm on a regular basis?

I think KK made the mistake that Boston Market did several years ago in expanding so quickly. Like Boston Market, KK suffers from widespread supermarkets that have their own bakeries. Where I am, most supermarkets put out fresher, better, bigger and cheaper doughnuts than the national chain stores, and the KK stores wnt away. The only KKdoughnuts I see now are in some of the convenience stores.

I think Dunkin Donuts survives because they market their coffee well and diversified the menu.

The common theme among all those companies is over-leverage. Whether they took on too much debt because of overexpansion (KK, like KL mentioned) or were involved in deals with overleveraged LBOs, these companies are in danger of not being able to pay their creditors when payments are due.

I think I'll be devastated if Krispy Kreme goes under. We have a KK shop about 10 miles from us, and we get a dozen glazed at least once a week. They just melt in your mouth.

BLOCKBUSTER has been slowly dying in the last few years because of Netflix.

I've been slowly dying the past year because of Krispy Kreme.

Blockbuster came into town, drove all the little guys out of business, and now they're crying because Netflix came up with a better service. Well, let's call the Wahmbulance! Blockbuster had an advantage with their "get it by mail, return it to the store" option, but they blew it. They charged people tons of fees if the DVD was out over a week. Although they promised to credit your account once the DVD was returned, I read stories about plenty of people who had to fight to get their money back, even though they had returned the DVD.

And they wonder why they're going out of business?

As for Dunkin Donuts, their doughnuts are like lead and their coffee tastes like crap. However, they are very clever at marketing. By selling their coffee in the supermarkets, they can probably afford to close half their stores and still do OK. Plus, it was pure genius to convince us to pay $8 for 50 doughnut holes.

I thought the Sirius-XM merger would help. Right now, Sirius is trading for 11 cents per share! No misprint. Is it any wonder why they made this list?

You're right, SB. Blockbuster made their bed - now they can lay in it. I have no sympathy for their company. The past few times I have been in there, the service was terrible, the selection was mediocre, and the prices were high. Not exactly a recipe for success.

11 CENTS??? Geez...I have received free satellite radio with two different cars. Even for free I didn't listen to it much.

Babe - Not just all that why I despise "Cockbuster," but also because funny enough, they had a chance earlier this decade to buy Netflix when that service was struggling to make a quick initial profit.

BUT Blockbuster turned that offer down, because they were investing on their own Internet "Downloading" service with another corporation. The name of that corporation?

Enron.

So Enron goes bankrupt, Blockbuster stuck with $300 million flushed down the toilet without that download program ever becoming anything...

To quote THE SIMPSONS...

damn it not krispy kream, and well i dont give a damn about blockbuster. one thing for sure though if this economy doesnt improve in two years then stores like target, k mart, and best buy will go down...then in five years wal mart would go down.

In ten years, we'll all be back to sticks and stones.

along with a new government lol

So should I go ahead and check out a bunch of movies from Blockbuster without returning them?

I shouldn't be amazed but I am. Rite Aids just went up all around Riverside County and now they may go belly up? And Krispy Cream???? Trump Enterprises?

What really shocks me though it Six Flags. We have a Six Flags Magic Mountain (I beleive there is one in Ohio too..Sandusky if I'm not mistaken ?)Our 8th grade trip has been there forever. Of course prices are an arm, leg and first born, but wow!! What a sad sitution if all or even some of these go under.

TIS

Six Flags?? Big deal.... Bush took us on a wild ride for eight years.

Yea, I believe that was Disney's "Mr. Toad's Wild Ride."



TIS

well i want a refund because that ride fucking sucked lol

Or even better: no evil.

Six Flags is in Ohio. However, Sandusky is host of a much better amusement park: Cedar Point. Six Flags replaced a chain called Geauga Lake, which ran a park with Sea World.

I'm not surprised that they are struggling. Prices are high and people are spending less. Plus the liability insurance to operate an amusement park is astronomical. I am surprised about Rite Aid, too. We need more drug stores in this country for competitive prices, not less.

Worth a try LN

Rite Aid has been suffering even before the present economic crisis. This chain began in 1962 with one store in my hometown of Scranton, and is presently headquartered where I now reside, near Harrisburg. It was founded by an extraordinary gentleman, named Alexander Grass, whose vision, hard work and wisdom made the company a success. He's been a noted philanthropist too, generously giving away millions for schools, hospitals and centers for the arts.

I'm guessing about 7 years ago he stepped down and handed the reins of the company to his son, Martin. Alexander planned to remain on the Board in an advisory capacity, but Martin, exercising his newly acquired authority, removed his dad from the company, thinking he would be a distraction to his new course of improving Rite Aid. Since then, Rite Aid has been found to engage in a widespread pattern of billing Medicare and insurance companies for fabricated prescriptions. Also, Martin and his officers were found guilty of accounting irregularities, designed to mislead investors, and he, his attorney and several of his execs are serving time in federal prison.

An example of the difference between Alex and Martin:

Martin arranged to have a luxury helicopter, complete with a bar, take him to Baltimore for the occasional business or shareholder meetings. Alex would drive his Chrysler the hour and a half and stop at a spot for ice cream where he had befriended the shop owners.

Martin sounds like what my boss refers to as a member of the Lucky Sperm Club.

Never heard that one before.

Sounds like the son of the Rite Aid founder was not a chip off the old block. I'm sure he'll screw his employees and shareholders, but not suffer himself personally from any of his mismanagement.

No surprise with Trump. He's been to bankruptcy court more times than Sen. Geary has been to Fredo's whore house. Trump is a bulls*it artist from the get go. He is no different than any real estate sales person who will lie through their teeth to get some deal closed.

Hey! I resemble that remark!!

At least you aren't from the south...then he would have said you'd lie through your tooth.

Yeah Blockbuster are going down. Obviously they've never heard of downloads!!

The article of this thread might need to be amended to mention 30 companies that might not survive after today's bloodletting on the Dow. We've reached the lowest point total (approx 6700) since May of 1997!

I saw a report this weekend that perhaps as many as 100 banks will go out of existence by the end of 2009. This is absolutely a crazy time. I am grateful that I am not facing retirement any time soon and feel badly for those who are being hurt by this woeful economy.

The scary part is, can the FDIC really pay off on all those bank accounts??

I just told a friend that I was at Lord and Taylor's taking advantage of their clearance sale. The same company that owns them bought Fortunoff. Lord and Taylor planned to close all their fine jewelry departments (hence the 70-80% off) and open Fortunoff boutiques in their stores. Then Fortunoff went belly up. Why Lord and Taylor is still going ahead with closing the department, I don't know, but the saleswoman that helped me told me that she's been with Lord and Taylor for almost 17 years and she's pretty sure she'll be out of work before the end of March.

Bingo! Exactly right!


That list includes Six Flags. WOW! The way things have been going we just might have to add Citibank to that list! Fucking scary shit!

Now we're going to be taken for a ride over to Fantasyland!