Bankruptcies were significant in 2024; here are some of the biggest
Published On Dec 30, 2024, 8:00 AM
In 2024, notable corporate bankruptcies included Spirit Airlines, Big Lots, and Red Lobster. Spirit Airlines filed for Chapter 11 due to over $1 billion in debts and operational losses exceeding $2.5 billion since 2020, yet it continues to operate flights. Big Lots, facing a significant decline in sales and $3.1 billion in debt, announced closure of all its stores after failing to reach a deal with a private equity firm. Red Lobster filed for bankruptcy due to rising costs and dwindling customer traffic, but continues operating its restaurants.
Stock Forecasts
XRT
Negative
Big Lots' complete closure of stores signifies a major setback for the retail sector, which could negatively impact retail-focused investment vehicles. As the decline in discount retail continues, investors should be cautious.
EAT
Negative
Red Lobster's financial challenges and ongoing operational issues may result in unsteady performance in the restaurant segment, reflecting negatively on similar restaurant investments.
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