Bankruptcies were significant in 2024; Here are some of the biggest

In 2024, several well-known companies filed for bankruptcy protection in the United States. Some have applied for basic financial restructuring, allowing them to continue operating, while others have announced the closure of several physical locations to avoid liquidation.

Retail outlets were the most affected. However, several restaurant chains and one airline were affected.

Companies are going bankrupt at the fastest rate since 2020: a “historic rise”

Spirit Airlines

The budget airline filed for Chapter 11 bankruptcy protection in November, facing more than $1 billion in impending debt payments and accumulating losses of more than $2.5 billion since 2020. Spirit has faced challenges such as declining passenger numbers during the pandemic, and competition from… The most important transfer, and even more important, is the blocked merger with JetBlue.

Despite the application, Spirit continues to operate, with customers allowed to book flights and avail frequent flyer points.

Big lot

The discount retailer, which has more than 1,300 locations, filed for bankruptcy protection in September. With sales declining and debt rising to $3.1 billion, the store initially announced it would close approximately 545 stores. The company later announced that because the deal with private equity firm Nexus Capital fell through, it would close all 963 remaining locations.

However, on December 27, the company announced a deal with Gordon Brothers Retail Partners LLC that would avoid closing all other locations. There are still no details on which locations will remain open and the deal still requires approval from a bankruptcy judge.

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Red lobster

The seafood chain, which opened its first location in Lakeland, Florida, in 1968, filed for Chapter 11 bankruptcy protection in May. The company faced significant financial challenges, including rising food costs, rising wages, and rising commercial rents. Food prices also brought traffic to a standstill as more people decided to cook at home.

Some analysts also pointed to Red Lobster’s “endless shrimp” deal, under which customers can eat as much shrimp as they want for just $20. A report in the Los Angeles Times spoke with a woman who bragged about eating 108 shrimp during a four-hour meal.

“I think the difference between something like an olive garden with bottomless breadsticks and a red lobster with bottomless shrimp is that the shrimp is like an appetizer while the breadsticks are more of a side,” said Jim Salera, a research analyst at Stevens. He focuses on restaurants, packaged foods and beverages, he told FOX Business. “The goal of any type of deal like this is to attract consumers, and then add additional purchases to the ticket, whether it’s alcohol or, you know, appetizers, things like that that expand the ticket.”

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“You actually have a small profit margin,” Salera said. “You can easily go beyond that when you’re attracting consumers who are just looking to get one item or interact with that offering and not kind of branch out across the menu.”

Fox Business’ Eric Revell contributed to this report.