9 Companies That May Not Make It Through 2017
Could 2017 be the year that finally does in Sears? Shares of the troubled retailer, founded in 1893, plunged more than 50 percent in 2016, reaching an all-time low. In announcing woeful earnings results in December, Chairman and CEO Eddie Lampert said the company remains “fully committed to restoring profitability” by closing poorly performing stores and selling off assets, among other steps. But time for a real turnaround has likely run out.
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Twitter survived 2016 — and its stock even rebounded from midyear lows — but the social media service is still struggling mightily and key executives, like its chief tech office, are still heading for the exit. Despite failing to sell itself in 2016, Twitter’s best bet to last past 2017 may be a new owner.
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UBS and Deutsche Bank see no upside on this retailer and are telling investors to sell. In general, mall clothing stores that cater to teens are hurting as mall traffic declines.
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Not even a year after emerging from Chapter 11 bankruptcy, the company filed again in November after a round of layoffs, a new chairman and exploring a sale. At the same time, it agreed to sell intellectual property rights to Canada-based Gildan Activewear, but that didn’t include any retail stores.
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Founder and CEO Kip Tindell stepped down in 2016 as the chain struggled with sluggish sales. A strong housing market has helped the stock recently, but with next year’s expectations of higher mortgage rates, home sales may fall, along with the retailer’s fortunes.
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The accessories mall store owned by Apollo Global Management is on watch from Fitch Ratings, which in September said the store is at high risk of failure in the coming year and this month said Claire’s is “challenged to maintain share, liquidity and positive comps.”
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In November, the company said in an investor call that it would close another 18 to 20 stores by year-end after it missed earnings estimates in the third quarter. One of its largest shareholders is calling for desperate action.
Dulles Town Center
Since going public, this sandwich-shop chain has yet to turn a profit, according to Nation’s Restaurant News. This year, it fired its CEO, filed for bankruptcy, lost its Nasdaq listing and set up an auction for its assets. That doesn’t portend a good 2017 for the eatery.
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There is a push by activist investor Sandell Asset Management to separate the company’s failing restaurant business from its more valuable packaged food business to unlock shareholder value. If that happens, the restaurants may have no hope for survival.
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