Brands on Life Support
Top brands are not immune to shifts in the market and changes in consumer behavior. Names that were once household terms in the realms of fashion, retail, and luxury are now scrambling to keep up with the competition or even just to survive. With that in mind, here are 20 brands that are currently on life support, if not already bankrupt.
1. Doc Martens
Dr. Martens was famous for extremely long-lasting boots, but in the past few years, quality has dropped. It is said that new pairs can fall apart in a year's time, when previously shoes would last for decades. Since being purchased by a private equity company, most would say the brand is overpriced and no longer lives up to its legendary status.
2. Victoria’s Secret
Victoria's Secret, which had been known for its fashion shows and risqué underwear, has faced waning consumer interest. Observers note that its dingy store aesthetic and limited concept of beauty have failed to resonate. Victoria's Secret closed 248 stores in 2020, but sales dipped 9% for the third quarter of 2022.
3. Burberry
Burberry has been struggling quite a bit in recent years. Sales are way down, especially in Asia and the Americas. In both of those markets, Burberry's sales dropped by 23%. The brand just can't seem to hold on to its former status as a global favorite.
4. Hugo Boss
Hugo Boss has been on a downward spiral over the last few years. Their preliminary earnings show a drop in sales of about 3% across Asia and the Americas. The Hugo Boss brand is under pressure as one of its important market segments, Asia and the Americas, shows a decline in sales.
5. Cartier
The Swiss luxury goods company is facing a challenging environment in China, a key market for its luxury jewelry and watches. The Swatch Group, which owns Omega, Tissot, and Longines, also reported a decline in sales. After years of growth, demand for luxury goods is softening in China, and shifting consumer preferences are hitting the biggest players in the watch and jewelry industry.
6. Macy's
It's sad to say, but Macy's is in a state of serious decline. Several stores are noted as having messy, disorganized floors with cluttered aisles and poor maintenance. Shoppers also see rude and overworked employees, making for a grumpy shopping experience far from what it once was.
7. Gap
Gap was once a hot and cool clothing retailer, but lately, their style has been fizzling out. They are now described by analysts as bland and ordinary, with customers saying their clothes are tired and redundant. The woes of Gap have become so great that their parent company, Gap Inc., may shutter hundreds of Gap locations to remedy ailing sales.
8. Tiffany
The nearly 200-year-old jewelry brand Tiffany & Co. has been experiencing declining sales and a lack of enthusiasm from U.S. millennials. The company’s relevance has been challenged by social trends, such as couples getting married later or foregoing traditional diamond engagement rings. Although Tiffany recently hired designer Reed Krakoff to overhaul its collections, the brand still faces challenges.
9. Forever 21
Forever 21 used to be the one-stop shop for fast fashion. Now, the brand is out of touch with millennial and Gen Z shoppers. It declared bankruptcy in 2019 when its target audience began gravitating towards sustainable and vintage stores.
10. Claire's
Claire's went from being a go-to for colorful earrings and other accessories to something that young shoppers can take or leave. After declaring bankruptcy in 2018, the brand hasn't recovered. With fewer people in malls and slow earnings, it hasn't become a hot spot again.
11. SKKN by Kim
SKKN by Kim, Kim Kardashian’s beauty line for skincare and makeup, has been confirmed as officially closed by the celebrity. The brand launched in June 2022 and was shut down less than three years later. Coty, which backed SKKN by Kim, announced a US$71.1 million write-off on its investment in SKKN by Kim, which helped force the brand’s closure as well as Coty’s lowered profit forecast.
12. H&M
While still on more solid ground than some of its fast-fashion counterparts, H&M has its own issues. The retailer has shuttered stores and carried billions in unsold inventory even prior to the pandemic. Alongside premium prices and a shift in consumer desire for more sustainable options, it's increasingly difficult for H&M to compete and stay relevant.
13. Hudson’s Bay
Canada’s oldest department store chain, Hudson’s Bay Co., has sought creditor protection after the retailer buckled under years of financial woes. In a statement, the company pointed to economic uncertainty, evolving consumer shopping habits, and ongoing U.S. trade disputes as major contributors to its current need to restructure.
14. Ann Taylor
Ascena, the parent company of women’s retailers Ann Taylor and Loft, is reportedly preparing to file for bankruptcy, which could lead to the closure of roughly a third of its stores. Other brands like Justice and Catherines could also be spun off in a sale.
15. BCBG
BCBG Max Azria has fallen quite rapidly. The brand filed for bankruptcy in 2017, closing most of its retail locations. It was purchased by Marquee Brands and Global Brands Group. Now only 22 stores and the official website remain.
16. True Religion
True Religion was once a fashionable premium denim brand that has seen its sales decline due to a massive debt load and changing tastes in fashion. Filing for Chapter 11 bankruptcy protection in 2017, the company has now been re-emerging from the restructuring process but still has some issues to address despite cutting its debt load in half.
17. Guess
Guess? has not fared well in recent years. The Americas Retail segment has suffered a 13.1% decline in revenue, with a 12% comparable sales drop through the third quarter of 2017. With declines in sales of this magnitude, it is unclear whether Guess has a future.
18. Eddie Bauer
Specializing in outdoor performance apparel, Eddie Bauer has failed to find a buyer and continues to be under pressure in a crowded market with fewer stores. A decision in 2009 to move into the women's lifestyle segment of the market created an identity crisis that has never fully dissipated, even after returning to its original outdoor clothing focus.
19. J. Crew
In many ways, J. Crew is suffering from a branding problem, as what was once an affordable and trendy retailer is now viewed as high-priced and out of fashion. It is hoping to get some support from its more affordable Madewell brand but faces a tough road ahead to stay relevant.
20. Chico's
Chico’s is a women’s apparel and accessories retailer that sells fashion clothing, jewelry, and shoes for mostly middle-aged women. The once-thriving brand has been on a steady decline, with net sales beginning to drop in 2016 and corporate revenue falling 8.4% through the third quarter of 2017.
