Seven Renowned Businesses Filed For Bankruptcy In 2023

It’s been a difficult year for a few well-known US retailers and companies. Following the Covid-19 pandemic, businesses had to deal with a plethora of issues including exorbitant costs, a lack of supplies, and intensifying competition. As a result, in 2023 several well-known names declared bankruptcy. Naturally, bankruptcy does not always indicate that a company is failing. To reduce expenses, wind down some operations, and get rid of debt, many US businesses file for bankruptcy. Chapter 11 bankruptcy is a popular path, which enables the business to reorganize to address its financial issues.

WeWork

In 2023, WeWork had an exciting ride. Once the most valuable start-up in the country, the business appeared ready to completely change the way people worked in the United States. Some draw comparisons

In November, the struggling coworking space company declared bankruptcy under Chapter 11. It came as little surprise.

Rite Aid

Following a protracted series of issues for pharmacies, Rite Aid declared Chapter 11 bankruptcy in October.

Rite Aid, like CVS and Walgreens, was forced to pay out large sums of money to resolve lawsuits brought about by claims that it had given customers illegal prescriptions for opioids. However, in contrast to its competitors, Rite Aid was losing the war against the and was unable to make a profit.

Rite Aid was also having trouble competing with more consumer-friendly national pharmacy chains like Amazon, Walmart, Target, and Costco.

Beyond Bed Bath & Beyond

In April of this year, the Everything store filed for bankruptcy, capping a lengthy journey. In one of the biggest retail bankruptcies in recent memory, it shut down its last 360 stores in addition to 120 buy BABYs.

Still visible, though, is the well-known blue logo. After saving the company from bankruptcy, Overstock.com rebranded it as BedBathandBeyond.com. With this move, popular branded products that Bed Bath & Beyond customers preferred were combined with Overstock’s online business model and merchandise categories.

Tuesday AM

Tuesday Morning, a home goods retailer that filed for Chapter 11 bankruptcy in February due to its “exceedingly burdensome debt,” was another business that failed in 2023. In three years, it had filed for bankruptcy twice.

The company declared in May that it was closing all 200 of its stores and going out of business.

Party City

The biggest party supply company in the United States declared bankruptcy in 2023 as a result of competition from big-box retailers, increased expenses during the pandemic, and a helium shortage.

But in September, the retailer’s reorganization plans were approved by a US judge, and it was able to emerge from bankruptcy.

SmileDirectClub

The company that provided telehealth orthodontics closed its doors in December, barely three months after declaring Chapter 11 bankruptcy.

The business offered teeth aligners, with a normal course lasting four to six months. Customers who became stuck in the middle of their treatment were advised by the company to speak with local

Lordstown Automobiles

In June, the manufacturer of electric vehicles declared bankruptcy under Chapter 11 and listed itself for sale.

Additionally, it declared that Foxconn was the target of a lawsuit in which it claimed that the company’s largest shareholder and former partner intended to “destroy” it.