Year Ender 2024: From Tupperware to Evergrande, top companies that filed for bankruptcy in 2024
In 2024, several high-profile companies faced financial turmoil, culminating in filing for bankruptcy¡ªa legal process that allows businesses unable to meet their debt obligations to restructure or liquidate their assets. Bankruptcy often signals a last-ditch effort to salvage operations, address creditor claims, or wind down entirely. This year, a mix of economic pressures and shifting market dynamics pushed some major players across industries into financial distress.?
Here's a look at the top companies that sought bankruptcy protection in 2024, and what led to their downfall:
Tupperware
Tupperware, a leading brand in kitchen and home storage solutions, filed for bankruptcy in September 2024.?
The company, which originated in 1946 with Earl Tupper's airtight plastic containers, listed assets between $500 million and $1 billion, and liabilities ranging from $1 billion to $10 billion.?
Tupperware's CEO, Laurie Ann Goldman, attributed the bankruptcy to years of financial struggles exacerbated by a tough macroeconomic environment.?
The company now seeks court approval to protect its brand and transition into a digital-first, tech-driven model.
The Body Shop (US & Canada)
In March 2024, The Body Shop filed for Chapter 7 insolvency in the US and Canada, a process involving asset liquidation to settle debts. The company shut down all its U.S. stores on March 1, 2024. In Canada, the company liquidated 33 out of its 105 stores and discontinued online sales in the country.
The UK-based cosmetics brand, founded in 1976 by Anita Roddick and known for its ethical, cruelty-free beauty products, has been hit hard by inflation and competition, especially as mall-based, middle-class-focused retailers struggle.?
Spirit Airlines
Spirit Airlines, the largest budget carrier in the U.S., filed for bankruptcy in November 2024 after facing mounting losses?and insurmountable debt?in the post-pandemic travel landscape. Increased competition and a failed merger?with JetBlue Airways?left the airline with no viable options.
Northvolt
Swedish battery manufacturer Northvolt filed for Chapter 11 bankruptcy protection in November 2024 in the U.S. The company, vital to the electric vehicle industry, is burdened with $5.8 billion in debt?stemming from production challenges, the loss of a key customer, and insufficient funding.
With only a week¡¯s worth of cash left, Northvolt secured $100 million in financing to navigate the bankruptcy process.
Evergrande Group
In January 2024, a Hong Kong court ordered the liquidation of Evergrande Group, China's colossal property developer. The company's inability to restructure its massive $300 billion debt after its 2021 default sent shockwaves through China's real estate sector, which is integral to the country's economy.
Once China's leading property developer, Evergrande was revealed in 2021 to be struggling with over $300 billion in debt as the government increased oversight of the real estate sector.?
Red Lobster
Red Lobster, the world's largest seafood restaurant chain, filed for bankruptcy after accumulating over $1 billion in debt and facing liquidity issues with less than $30 million in cash reserves.
Red Lobster CEO Jonathan Tibus said in the bankruptcy documents: "Recently, the debtors have faced a number of financial and operational challenges, including a difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition within the restaurant industry."
LaVie Care Centers
LaVie Care Centers, a leading operator of skilled nursing facilities, filed for Chapter 11 bankruptcy in June 2024, blaming the lingering effects of the COVID-19 pandemic and rising labour costs.
LaVie carries over $1.1 billion in debt, including $622 million tied to long-term lease agreements with its landlords.
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