10 notable companies that went bankrupt in 2024
What's the story
The year 2024 has been characterized by severe economic downturn, forcing many prominent companies to file for bankruptcy.
This legal process is typically a final option for companies that cannot meet their debt obligations, permitting them to restructure or liquidate their assets.
The economic pressures and market shifts this year have driven major industry players into financial turmoil.
Here's a look at some of the top companies that sought bankruptcy protection in 2024 and what caused their downfall.
Company #1
Evergrande Group faces liquidation due to massive debt
In January 2024, a Hong Kong court ordered the liquidation of China's colossal property developer Evergrande Group.
The company's failure to restructure its massive debt following its 2021 default sent shockwaves through China's real estate sector, which is central to the country's economy.
Once China's top property developer, Evergrande was exposed in 2021 to be grappling with over $300 billion in debt as the government tightened oversight of the real estate sector.
Company #2
Red Lobster files for bankruptcy amid financial challenges
The world's largest seafood restaurant chain, Red Lobster, filed for bankruptcy in May this year after accumulating over $1 billion in debt and liquidity issues with less than $30 million in cash reserves.
The company struggled to cope up with a difficult macroeconomic environment, underperforming restaurant footprint, failed strategic initiatives, and increased competition within the restaurant industry.
Red Lobster exited bankruptcy after being acquired by RL Investor Holdings for $375 million in September.
Company #3
Tupperware's financial struggles lead to bankruptcy
Tupperware, a leading name in kitchen and home storage solutions, filed for bankruptcy in September 2024.
Founded in 1946 by Earl Tupper with his revolutionary airtight plastic containers, the company listed assets of $500 million-$1 billion and liabilities of $1 billion-$10 billion.
CEO Laurie Ann Goldman blamed years of financial struggles, exacerbated by a difficult macroeconomic environment, for the bankruptcy.
Company #4
The Body Shop faces insolvency in US and Canada
In March 2024, The Body Shop filed for Chapter 7 insolvency in the US and Canada, a process where assets are liquidated to pay off debts.
The company closed all its US stores on March 1, 2024. In Canada, it liquidated 33 of its 105 stores and stopped online sales in the country.
The UK-based cosmetics brand has been impacted severely by inflation and competition from mall-based retailers targeting middle-class consumers.
Company #5
Spirit Airlines files for bankruptcy amid mounting losses
Spirit Airlines, the largest budget carrier in the US filed for bankruptcy in November 2024 after suffering mounting losses and insurmountable debt in the post-pandemic travel landscape.
With increased competition and a failed merger with JetBlue Airways, the airline was left with no viable options.
The company lost more than $2.5 billion since the start of 2020 and faced debt payments totaling more than $1 billion.
Company #6
Northvolt seeks bankruptcy protection amid financial challenges
Swedish battery manufacturer Northvolt filed for Chapter 11 bankruptcy protection in the US in November 2024.
The company, which is critical to the electric vehicle industry, is weighed down by $5.8 billion in debt amid production difficulties, the loss of a key customer, and inadequate funding.
With just a week's worth of cash remaining, Northvolt obtained $100 million in financing to traverse the bankruptcy process.
Company #7
LaVie Care Centers files for bankruptcy amid pandemic effects
LaVie Care Centers, a top operator of skilled nursing facilities, filed for Chapter 11 bankruptcy in June 2024, citing the lingering effects of the COVID-19 pandemic and rising labor costs.
LaVie is saddled with over $1.1 billion in debt, including $622 million associated with long-term lease agreements with its landlords.
Company #8
Avon heads to bankruptcy following crippling lawsuits
Avon, the US-based holding company of Avon Products, filed for Chapter 11 bankruptcy in August this year "to address its debt and legacy talc liabilities."
Once a dominant direct sales firm valued at approximately $21 billion, Avon faces over 200 lawsuits linking its talc-based products to cancer.
Despite ceasing sales in the US in 2016 after divesting its North American business, Avon continues to operate in international markets, including Europe and Latin America.
Company #9
TGI Fridays, restaurant chain that popularized 'happy hour,' seeks bankruptcy
TGI Fridays, once a pioneer in popularizing the "happy hour" concept, filed for bankruptcy protection this November due to the financial strain of COVID-19 and shifting dining trends.
At its peak in 2008, the renowned American restaurant chain operated 601 locations in the US and boasted a $2 billion business.
However, a sharp decline in sales has led to the closure of many branches, though several international franchises remain operational.
Company #10
BYJU'S US unit files for bankruptcy
BYJU'S Alpha Inc., a subsidiary of Indian edtech giant BYJU'S, filed for bankruptcy protection in the US in February 2024 following a default on a $1.2 billion loan.
The lenders required the company to file for bankruptcy as a condition for providing additional funding.
Alpha's CEO, Timothy Pohl, revealed in court documents that the firm lacks the financial resources to sustain its legal dispute with its parent company over the debt.