Debtwire's global head of legal Sarah Foss talks to Fox News Digital about the companies that thrived and struggled to survive in 2024.
The 2024 markets saw swings and swings, big wins and losses, which translated directly to some of America's favorite retail, restaurant and travel brands.
Debtwire, the data aggregator that tracks all things corporate stress and bankruptcy, has revealed the names that came out on top this year — and those that fell to the bottom.
the winners
JOANN FABRIC AND HANDICRAFTS
Popular craft store retailer JOANN filed for Chapter 11 bankruptcy in March and managed to get through it without closing a single store and halving its $1 billion debt.
“This is a company that saw a huge increase in revenue as a result of the pandemic. More people were doing crafts at home, and all the products that JOANN But these earnings have (since) become a regular post,” Debtwire head of legal said to Fox News Digital While we have seen changing shopping habits, fewer people in stores, increased spending.
Companies go bankrupt at fastest pace since 2020: a 'historic leap'
“With JOANN, it was really key for the company to get rid of a huge amount of its debt burden, and I think it's really a restructuring like this that gives some hope to the retail sector.”
Debtwire's top business gainers in 2024 were JOANN Fabrics and Rite Aid, while the biggest losers were 99 Cents Only and Big Lots. (Getty Images)
Ritual assistance
Drug retail chain Rite Aid is also considered a 2024 hit by Debtwire, maintaining customer loyalty despite its “benefits” Chapter 11 bankruptcy filing.
“Right after the bankruptcy filing, there was talk of closing their doors completely and liquidating. But the company was able to move forward with a plan,” Foss said.
“Rite Aid needed people filling their prescriptions there to do that during the bankruptcy, after the bankruptcy, and they managed to get through the bankruptcy without losing a single retail customer… “Which is very important for a Rite Aid or a Walgreens or a CVS. When people could get their prescriptions at another pharmacy down the road or even online.”
Walmart
Keith Fitz-Gerald, chief investment officer of the Fitz-Gerald Group, argues that it's time for investors to take offense at Varney & Co.'s markets.
In terms of companies that haven't faced bankruptcy concerns this year, Walmart finds itself at the top. America's largest retailer in its latest third quarter earnings report Raised its outlook for the current year After benefiting from increased spending on non-essential items and increased pick-up and drop-off orders.
With Walmart, Foss noted, it has found a way to appeal to cash-strapped, budget-conscious consumers in a way that other retailers haven't.
Amazon
Amazon has also emerged as a top competitor, disrupting traditional brick-and-mortar shopping methods. Earlier this year, Amazon's stock hit a record high and its market capitalization exceeded $2 billion.
“We constantly hear from brick-and-mortar retailers that have filed for bankruptcy that customers are buying (online) from Amazon. Retail chains only have time. They are very, very hard to compete with.”
The losers
99 cent stores only
Kristen Bentz, founder and president of KB Advisory, analyzes the retail climate with rising prices and declining employment in “Earnings.”
According to Debtwire, the biggest loser in 2024 is 99 Cents Only Stores, which filed for bankruptcy in April to cease operations, close its doors for good and sell its assets to discount retailers.
“If consumers feel label shock, why aren't these companies more successful?” Fez raised. “These are companies, many of them have huge debt. Only 99 cents stores reported $1 billion to $10 billion in debt when they filed for bankruptcy…we're just seeing consumers change how and where they spend. You know, it might be a small amount of their discretionary spending.”
That loss also translates to dollar store discount names: “You've had some of them amassing 99-cent store assets, some of their stores that are under a new umbrella… It's a tough business model for all of us. to understand And I think we will continue to face pressure in the new year.”
Large lots
Carle Place, NY: Big Lots store in Carle Place, New York on July 23, 2024. (Getty Images)
In recent days, Big Lots started to take place Selling it “going out of business”. Big Lots filed for Chapter 11 bankruptcy in early September to help facilitate the sale of “substantially all” of its assets to “stalking horse bidder” Nexus Capital Management.
Fass noted that Big Lots has similar liabilities to 99 Cents Only stores.
party city
Party City filed for bankruptcy just days before Christmas 2024 season 11. (iStock)
Although Foss initially thought Party City might see a retailer by 2025 It was announced just before Christmas which closes all stores after 40 years of operation.
According to CNN, Party City employees lost their jobs after Friday. According to reports, the company is eyeing widespread store closures in early February.
“With a party town, it's especially interesting that they came out of bankruptcy last year. This will be their second season of 11, what we like to call season 22, in less than two years.”
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Container store
View of The Container Retail Store on Santana Row in Silicon Valley, San Jose, California, January 3, 2020. (Getty Images)
The Container Store filed for Chapter 11 bankruptcy on Monday morning, shortly after the New York Stock Exchange decided to delist the retailer. Foss claimed they were facing liquidity and profitability problems.
“This is really a key time for struggling retailers. The holiday shopping season is critical for retail chains and can be a make-or-break time for a struggling company,” he said.
“I think there's been talk with The Container Store about having a potential investment from Beyond Inc., the company that used to be Overstock … I think the merger in the competition space could potentially be good You know, there's a problem. “It's that there's not a lot of third-party money or retailers that want to buy these troubled chains.”
FOX Business' Eric Rolle, Greg Wenner and Aislin Murphy contributed to this report.