by Michael
Businesses are declaring bankruptcy at a much faster rate than they did last year. Thousands upon thousands of once thriving businesses are failing, but this just must be another sign that the economy is “fine”. No matter how bad the numbers get, we are assured that the people running things have everything under control and that the outlook for the future is wonderful. Of course I understand that this is an election year and virtually everyone is trying to put their own unique spin on things. But there is no possible way that you can make numbers like these look good…
Personal and business bankruptcy filings rose 16.2 percent in the twelve-month period ending June 30, 2024, compared with the previous year.
According to statistics released by the Administrative Office of the U.S. Courts, annual bankruptcy filings totaled 486,613 in the year ending June 2024, compared with 418,724 cases in the previous year.
Business filings rose 40.3 percent, from 15,724 to 22,060 in the year ending June 30, 2024. Non-business bankruptcy filings rose 15.3 percent to 464,553, compared with 403,000 in the previous year.
Read that last line again.
Business bankruptcy filings were up by more than 40 percent in just one year.
But don’t worry.
Everything is “fine”.
Sadly, more businesses continue to file for bankruptcy with each passing day. Earlier this week, I was saddened to learn that even Avon has been forced to file for bankruptcy…
Avon Products filed for Chapter 11 bankruptcy on Monday as the beauty brand looks to address its debt and legal liabilities stemming from lawsuits that alleged its talc-based products were contaminated with cancer-causing substances.
The holding company hasn’t sold Avon products in the U.S. since it divested its North America business in 2016, but remains the holding company for the Avon brand’s operating entities outside the U.S.
Once upon a time, Avon was one of the most iconic brands in the beauty industry.
But now times have changed.
Also on Monday, a chain of gyms that has more than 100 locations in seven states announced that it had filed for bankruptcy…
Gym chain Blink Fitness announced Monday that it filed for Chapter 11 bankruptcy.
The Chapter 11 filing is meant to help the Equinox Group-owned chain “execute an efficient and value-maximizing sale process to optimize its footprint and position the business for long-term success,” according to a news release.
Blink said it will keep its gyms open in the meantime. It has more than 100 locations spread across seven states.
I could give you endless examples if you would like.
LL Flooring is another big name that has decided that it is time to file for bankruptcy…
One of America’s biggest flooring suppliers has filed for bankruptcy – the latest in a long line of retailers this year to face money problems.
LL Flooring will shut 94 of its 442 stores, which are spread out across 47 states, to cut costs and make the company attractive to a buyer.
The retailer, which specializes in hardwood flooring, has faced falling sales over the past year as families cut back on remodelling their homes.
Needless to say, this tsunami of bankruptcies is going to cost a lot of people their jobs.
When Rite Aid filed for bankruptcy protection, they originally indicated that 154 stores would be closing…
After filing for Chapter 11 bankruptcy protection in October, Rite Aid announced it would initially shutter 154 underperforming stores across a dozen states.
Since that time, Rite Aid has announced the closing of an additional 702 locations…
Rite Aid has now shut almost all of the stores it once had in Michigan and Ohio – as it cuts all ties with the two Midwest states.
In total across the US, the drugstore has now closed 856 stores since October 2023 – more than a two-fifths of the roughly 2,000 locations it operated before it fell into bankruptcy.
The latest closures – 74 so far in August- were all in the two Midwest states apart from one each in California and Washington. That is on top of 169 in July, all in Ohio and Michigan.
It is probably just a matter of time before the entire chain goes belly up and everyone that works for Rite Aid loses their jobs.
Speaking of failing drug store chains, Walgreens is in the process of closing more than 2,000 locations…
Walgreens Boots Alliance will close a significant portion of its roughly 8,600 U.S. stores as the pharmacy chain seeks to turn around its struggling business, which has been hit by inflation-weary customers paring their spending.
“The current pharmacy model is not sustainable,” CEO Tim Wentworth told investors on a Thursday earnings call.
With 75% of the company’s U.S. stores accounting for 100% of its adjusted operating income, the company plans to examine the remaining 25% of its stores for closures, which would occur over the next three years, said the executive, who took the company’s helm in 2023. Shuttering 25% of its 8,600 U.S. locations would result in about 2,150 store closures.
Of course it isn’t just retailers that are laying off workers.
According to Fox Business, Paramount has started the process of laying off approximately 15 percent of its total workforce…
Paramount has begun laying off a significant portion of its workforce, with hundreds of employees expected to be cut in the coming weeks.
A memo signed by co-CEOs Chris McCarthy, Brian Robbins, and George Cheeks was leaked to entertainment outlets on Tuesday, including Deadline, in which the chief executives braced employees for the cuts.
“This process will take place in three phases, starting today and continuing through the end of the year,” the memo reads. “We expect 90% of these actions to be complete by the end of September.”
Employers all over the country are conducting mass layoffs, but the government is telling us that unemployment is low.
Thousands upon thousands of businesses are declaring bankruptcy, but the government is telling us that the economy is booming.
The cost of just about everything just keeps going up, but the government is telling us that inflation is under control.
You can believe them if you want.
But they aren’t going to be able to hide the truth for long.
Decades of very bad decisions are starting to catch up with us in a major way, and unprecedented chaos is ahead.
So instead of using this summer to party, I am encouraging all of my readers to prepare for the very difficult months and years that are in front of us.
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