A brand is an iconic representation of the company’s vision, success and its longevity. When a company abandons its long-standing brand, usually it is a sign of failure in its progress or out of many reasons, it could be bankruptcy. Bankruptcy is the most common reason for brands to vanish, and for this reason, many of the companies in the given list will disappear in 2017.
1. AT&T and DIRECTV
After its $69 billion acquisition of Direct TV in 2016, AT &T is killing of its U-Verse. At &T broadband and internet services are now known as At &T internet and AT&T phone.The transition is more of a smooth process as AT &T has been phasing out its new U-Verse subscriptions and driving its new customers towards DirecTV services. As mentioned in the customer notification, AT&T mentioned that ” There is no change to your speed, voice plans or price and you will see the new names on future bills, correspondence and online.”
I think its a smart move to put U-Verse aside which particularly lack in numbers, Acquiring DirecTV who has been the pay-TV leader in customer satisfaction, service, and performance for years will definitely improve At &T’s brand reach to its customers (Both current and new).
2. Sports Authority
Sports Authority has closed 140 out of its more than 450 stores (i.e. Approximately one in three stores in America). This is because the company has filed its bankruptcy for $1 billion. After 29 years in business, Sports Authority brand has been sold to Dick’s Sporting goods who bought the company name and other intellectual property for $15 million at an auction that took place in June 2016. The company failed to reorganise its bankruptcy protection and forced to closed all of its stores and the company’s inventory was sold to three liquidators, who ran the retailer’s final going-out-of-business sales.
3. The LIMITED
After more than 50 years in business, The Limited will likely to close its doors in 2017. The Limited is an American clothing company. It is owned by the private equity firm Sun Capital Partners. The company was a spin-off from L Brands, a company whose flagship brands include Victoria’s Secret and Bath & Body Works. Due to its imminent bankruptcy, the company recently hired multiple legal advisers for help with debt restructuring.
Failing to adapt to the changing retail environment (Women are changing in favour of high-end products over mid-priced apparel), The Limited is likely to sell its stores and merchandise in a going-out-of-business sale. An additional sign of impending bankruptcy, all sales at the company’s online store are final and 50% off. The other retail apparel brands like Aeropostale and Pac Sun has experienced similar fates this past year.
Pebble Technology Corporation developed the first commercially successful smartwatch, the Pebble Smartwatch. The smartwatch was pledged from a Kickstarter campaign, proving massively successful, collecting around $10 million for the development of the smartwatch. Pebble, the first of its kind, has launched on iOS and Android platforms in 2012 a far ahead of its competitors. When Apple watch was released in April 2016, Pebble used to be the cheaper alternative.
The sales were initially spiked but eventually, drop down. It laid off its one-quarter of its staff and the latest, the company was acquired by Fitbit in December for $40 million. Pebble no longer manufactures smartwatches but, customers can buy from the third-party vendors which will likely become harder in 2017.
5. Dodge Viper
Most of the car models sustain in the market because of their long running brands. Whether it is Toyota Camry in the luxury segment or Nissan Altima in the mid-segment, cars do have its significant brand reach in their target market. The 25-year old Dodge Viper is one of the biggest names in sports cars
The 25-year old Dodge Viper is one of the biggest names in sports cars and soon it will be a thing of the past. During the great recession, Chrysler has experienced bankruptcy and the carmaker stopped production on the Dodge Viper with the 2010 year model but, reintroduced it just three years later. Targeting the sports cars enthusiasts, Dodge Viper has a price tag of $80,000 but, the sales never meant to be the same like the mass market vehicles. Throughout the 2016 year except for December, Chrysler sold just 571 Vipers in the U.S. and 48 in Canada. In June, the company announced that the 2017 model year would be the Viper’s last and that production would end next year.
So, What do you think? Did I miss any brand? Let me know your thoughts.