Q:

How do you find companies that are going out of business?

A:

Quick Answer

There is no certainty regarding when or how a company will go out of business, but Huffington Post provides a list of brands that can disappear due to bankruptcies or mergers. Factors impacting the state of a brand include declining sales and losses, disclosures by the company, rising costs unable to be recouped through increased sales and a withering market share.

Continue Reading

Full Answer

OfficeMax is one brand that is not meeting the criteria to remain sustainable, reports the Huffington Post. A potential merger is a reason the brand is in jeopardy. A merger consolidates two competing companies, thus lowering market competition within that specific industry. The Federal Trade Commission reviews all potential mergers prior to the approval of the transaction.

As of 2016, American Apparel filed for bankruptcy, thus putting into question its continued operations, states the Huffington Post. American Apparel has fewer stores in the United States compared to GAP and H&M. The competitors also offer lower prices and replenish their supplies much faster. U.S. Airways, which completed a merger with American Airways in 2013, is another brand worth noting. In mergers, the brand or company perceived to have stronger consumer perception remains. In some instances, the original company logo displays on buildings and advertisements, but the company ultimately phases out operations completely.

Learn more about Business Resources

Related Questions

Explore