The global financial landscape remains dynamic and often volatile, with fluctuations that impact economies on multiple levels. Recently, several prominent organizations across various sectors have encountered significant financial difficulties, with some facing the prospect of major restructuring or even collapse.
Analyzing these developments reveals more than abstract figures; they reflect tangible consequences for individuals, businesses, and communities alike. From cherished sports clubs and essential public service providers to familiar retail establishments, the challenges these entities confront illustrate the complex economic forces and specific operational issues shaping their current situations.
This article aims to present a clear and factual examination of these cases. By focusing on verified information, we seek to understand the nature of the difficulties involved and the potential ramifications, offering readers an insightful and transparent perspective.
1.**Leicester City Football Club Ownership**: Leicester City Football Club is currently shadowed by troubling news regarding its ownership. The King Power International Group, owned by the Srivaddhanaprabha family who operate LCFC, is reportedly experiencing extreme financial distress.
The organization linked to Leicester chairman Aiyawatt ‘Khun Top’ Srivaddhanaprabha is said to be confronting the possibility of a total business collapse. This claim carries significant weight given the potential impact on the football club itself. The global Covid-19 shutdown severely affected the duty-free business, which in turn reportedly led to reduced investment in both on-field and off-field personnel at Filbert Way.
Reports indicate that King Power is at risk of liquidation, a development described as a profound shock in Leicestershire, especially with the club preparing for a difficult Championship campaign. The company’s new CEO, Nitinai Sirismatthakarn, is quoted as stating, “It’s like a patient surviving on oxygen. The company’s intention was to ask AOT to remove the oxygen because we can’t cope anymore. This was the signal we sent.” Such remarks highlight the severity of the cash-flow crisis threatening both King Power’s operations and its workforce of approximately 7,000 employees. Should recovery efforts fail, the group might be compelled to sell Leicester City Football Club.
2. **Almost Half of Councils in England**: A recent report from the National Audit Office, the government’s spending watchdog, has issued a stark warning regarding the financial stability of local governments in England. According to the report, nearly half of English councils risk falling into bankruptcy unless significant measures are taken to address a substantial deficit.
This deficit, which accumulated under Conservative-era policies, is estimated to total £4.6 billion. The report emphasizes that increasing demands on public services, coupled with repeated delays in reforming local government funding, have placed many councils in an unsustainable financial position. One of the most concerning issues is the failure to adequately reform funding for special educational needs and disabilities (SEND), where escalating costs continue to outpace available resources.
Previously, a government measure known as the “statutory override” allowed councils to temporarily exclude SEND debts from their balance sheets, effectively masking the underlying problem. However, this provision is set to expire in March 2026. By then, the combined deficit for councils across England is projected to reach £4.6 billion, exacerbated by growing pressures on local authorities.
The National Audit Office cautions that if these issues are not addressed by March 2026, 43 percent of local authorities could face effective bankruptcy. While council funding has increased in recent years, it has not kept pace with rising demand or the increasing complexity of needs. Following years of austerity, more councils in England have declared effective bankruptcy in the past three years than in the preceding thirty years.
3. **Housing Authority of City Milwaukee (HACM)**: The Housing Authority of City Milwaukee (HACM), the city’s second-largest landlord, is reportedly confronting a severe financial crisis, with bankruptcy filings potentially imminent within 45 days. Sources indicate that this crisis is partly due to the improper use of Section 8 housing funds.
Internal emails obtained by a local news outlet reveal the seriousness of the situation. Multiple sources confirmed that HACM’s Chief Financial Officer, Brad Leak, sent an email to several board commissioners stating that unreconciled cash balances in agency audits show $2.8 million has been diverted from the Section 8 program since 2019 to cover agency overhead, including salaries and benefits, specifically to meet payroll obligations. This suggests that funds intended to assist very low-income families, the elderly, and disabled individuals have been misappropriated to pay agency staff.
Documents further reveal that this misuse was not reported to the Department of Housing and Urban Development (HUD), the federal agency overseeing HACM. Although HUD audits identified financial irregularities, the source was not clearly determined, resulting in a federal directive for HACM to outsource its Section 8 program. Compounding the crisis, HACM has reportedly exhausted its construction loan capacity and has requested emergency financial assistance from PNC Bank to fulfill its obligations.
Internal documents detail that the agency lacked sufficient funds to cover payroll during a specific week in January, warning, “At this pace, the agency will be bankrupt in 45 days.” The CFO’s email reportedly concluded with an urgent appeal: “HELP!!!!” The agency’s financial difficulties have already led to the dismissal of 20 employees as part of cost management efforts to stabilize its finances.
4. **Party City**: Party City, the well-known party supply retailer, has filed for Chapter 11 bankruptcy protection in December at the U.S. Bankruptcy Court for the Southern District of Texas.
The New Jersey-based chain had previously emerged from bankruptcy just one year earlier, having eliminated approximately $1 billion in debt. The current filing reveals that the company plans to put its assets up for auction. Should a sale not materialize, the company intends to commence store closing sales to liquidate the retail and wholesale inventory and locations of all Party City Group companies.
Although specific locations in Delaware are noted as potentially impacted by closures or sales, the filing reflects a broader restructuring effort under bankruptcy protection. The decision to seek Chapter 11 protection again, so soon after the prior emergence, highlights the persistent difficulties faced by retailers, especially those reliant on event-driven sales.
5. **The Container Store**: The Container Store, a Texas-based retailer, announced in December that it has filed for Chapter 11 bankruptcy protection amid financial challenges.
Despite the filing, the company’s CEO has affirmed that the chain is “here to stay.” The parent company, The Container Store Group, described the filing as a “recapitalization transaction” aimed at strengthening the company’s financial position, supporting growth initiatives, and enhancing long-term profitability.
This strategy indicates that the company is utilizing the Chapter 11 process primarily as a means of financial restructuring rather than liquidation. Like many retailers, The Container Store faces obstacles from the current economic environment and shifting consumer behaviors. This filing reflects its approach to confront these challenges proactively and invest in future expansion.
6. **TGI Fridays**: TGI Fridays, the casual dining restaurant chain, filed for Chapter 11 bankruptcy protection in November, aiming to restructure while maintaining operations at key locations.
The filing seeks to keep open 39 company-owned restaurants included in the bankruptcy proceedings. Additionally, hundreds of other U.S. and international locations owned by the company, along with restaurants operated by third-party franchisees, are expected to remain operational. Prior to the filing, the chain had already closed 50 locations in the fall. Before these closures, TGI Fridays operated more than 270 restaurants globally; the current number of open locations stands at just over 160 worldwide.
This bankruptcy filing represents a strategic effort to stabilize and restructure a core group of restaurants after substantial downsizing. It underscores the ongoing challenges facing casual dining establishments within a highly competitive market.
7. **Big Lots**: The discount retail chain Big Lots has recently undertaken a significant financial restructuring amid bankruptcy proceedings and widespread store closures. According to a December announcement, the company initially planned going-out-of-business sales, signaling an extensive wind-down. However, circumstances have since shifted.
The company reportedly filed for Chapter 11 bankruptcy protection in September and initially closed 340 stores. The original plan, based on a proposed sale to an affiliate of Nexus Capital Management LP, appeared unlikely to be finalized. However, on a later Friday, Big Lots reportedly announced a new arrangement to preserve hundreds of stores.
Under this revised plan, a transaction with the Boston-based asset liquidation firm Gordon Brothers Retail Partners will result in the transfer of between 200 and 400 Big Lots locations to Variety Wholesalers Inc., based in Hendersonville, North Carolina. Variety Wholesalers intends to continue operating the stores under the Big Lots brand.
This evolution reflects a shift from large-scale liquidation toward a continuity strategy, suggesting an attempt to stabilize operations and protect brand presence. The case of Big Lots illustrates the challenges many retailers face when navigating bankruptcy, and the adaptive strategies deployed to ensure business continuity.
These developments also serve as a broader lens through which to view the persistent volatility in the retail, restaurant, and pharmacy sectors. From supply chain disruptions to evolving consumer behavior and mounting debt, businesses across multiple industries are contending with a range of economic pressures. Examining these scenarios reveals how different entities are responding—through sales, restructurings, or ownership transitions—in efforts to sustain operations and protect stakeholder interests.
8. **American Freight**: The national furniture retailer American Freight has reportedly decided to close all 328 of its physical locations across the United States. The closures span dozens of states and are part of Chapter 11 bankruptcy proceedings initiated by its parent company, Franchise Group Inc.
The announcement, made in November, outlines a full wind-down of American Freight’s brick-and-mortar operations. Despite this large-scale closure, other holdings under Franchise Group Inc., including The Vitamin Shoppe and Buddy’s Home Furnishings, are reportedly expected to continue operating.
This sweeping exit from the retail landscape highlights the mounting competitive pressures and shifting dynamics within the furniture sector. The use of Chapter 11 appears to be a targeted strategy to discontinue an underperforming brand while preserving other business divisions viewed as financially viable.
9. **buybuy Baby**: The national baby goods retailer buybuy Baby has reportedly announced plans to close all of its physical store locations, with the transition expected to be completed by the end of 2024.
Following the closure, the company intends to relaunch as a “digital-first” brand. A statement from buybuy Baby described the move as a difficult but deliberate decision, shaped by feedback from both customers and business partners. While acknowledging that the news may disappoint some, the company emphasized that this marks the beginning of a new chapter.
The shift reflects a broader trend across the retail sector, as businesses adapt to changing consumer preferences by prioritizing e-commerce over traditional store formats. For a specialty retailer like buybuy Baby, this strategy may help reduce operational costs while aligning more closely with modern shopping behavior.
10. **Macy’s**: Macy’s, the iconic department store chain, is reportedly moving forward with plans to close additional locations as part of its broader restructuring strategy. According to its third-quarter earnings report, the company intends to shutter approximately 15 more stores following the holiday season. This marks an increase from its earlier plan, which aimed to close 50 locations.
During the same quarter, Macy’s reported net sales of $4.7 billion, reflecting a 2.4 percent year-over-year decline. The company identified these closures as part of an effort to expedite the removal of what it calls “non-go-forward” stores—locations that are underperforming and not aligned with the company’s long-term operational plans. Macy’s remains committed to closing 150 such locations by the end of 2026.
Although specific stores targeted for closure were not disclosed, the initiative underscores the persistent pressures faced by traditional department stores. The company appears to be prioritizing consolidation and operational efficiency, likely with the goal of reinvesting in stronger assets or future growth channels in order to remain competitive in a shifting retail environment.
11. **Walgreens**: Walgreens has reportedly announced plans to close approximately 1,200 stores across the United States, reflecting a significant shift within the pharmacy sector. According to the company’s October earnings report, 500 of these closures are scheduled to occur during fiscal year 2025.
Back in June, Walgreens confirmed its intention to shut down unprofitable locations, though the specific scale was not disclosed at the time. Among the closures already underway, a Wilmington, Delaware location was reportedly included in the fall, with additional stores in the state having closed since October 2023.
This move aligns with a growing pattern of pharmacy closures nationwide. Both independent operators and major chains are reportedly facing profitability challenges. In response, Walgreens appears to be pursuing a restructuring strategy focused on improving the financial performance of its core locations by consolidating its store footprint in an increasingly difficult market.
12. **CVS**: CVS has been actively executing a multi-year plan involving substantial store closures across the United States. As announced in 2021, the company plans to shutter 900 locations between 2022 and 2024 as part of its broader transformation strategy.
In a more recent development, CVS reportedly confirmed in January that it would close multiple pharmacies located inside Target stores. However, no detailed list of affected locations was released. Beyond physical store reductions, the company also disclosed in October that approximately 2,900 employees, primarily in corporate roles, were being laid off, according to a report by USA Today.
Despite these nationwide changes, a CVS spokesperson reportedly stated that no store closures occurred in Delaware in 2023. As of February 13, there were also no closures planned for the state in 2024. This reflects CVS’s selective approach to restructuring, focusing on national optimization while considering market-specific dynamics.
13. **Rite Aid**: Philadelphia-based pharmacy chain Rite Aid has reportedly entered Chapter 11 bankruptcy proceedings, citing escalating debt obligations and ongoing legal challenges, including lawsuits related to the overprescription of opioids. The formal restructuring process reportedly began in October.
As part of this initiative, the company plans to close up to 500 stores nationwide. The context indicates that several store closures have already occurred in Delaware since October 2023, and additional locations in the state are scheduled to close throughout 2024. These developments reflect the tangible regional impact of a broader national downsizing effort.
Rite Aid’s financial restructuring underscores the severe difficulties it faces across multiple fronts, including litigation risks, competitive market conditions, and unsustainable debt. The decision to pursue bankruptcy and scale down operations appears to be a strategy aimed at preserving the company’s long-term viability through a significantly leaner footprint.
14. **Red Lobster**: Casual dining chain Red Lobster is reportedly undergoing a deep financial crisis, culminating in a Chapter 11 bankruptcy filing and an expansive wave of restaurant closures. In June, the company disclosed plans to shut down at least 100 additional locations, following the sudden closure of 99 restaurants across 28 states in May.
Court filings reportedly revealed the scale of Red Lobster’s financial distress, with guest traffic down approximately 30 percent since 2019. The company was also said to have just $30 million in cash available, while facing more than $1 billion in liabilities owed to thousands of creditors. Specific locations in Delaware were listed as “at-risk,” according to the filing, indicating their possible inclusion in the next wave of closures.
The Red Lobster case underscores the mounting challenges facing the casual dining industry, including changing consumer habits, rising costs, and significant debt burdens. The company’s attempt to restructure its operations and obligations through bankruptcy protection reflects the difficult environment for mid-tier restaurant chains struggling to recover post-2019.
15. **7-Eleven**: 7-Eleven, one of the most recognizable convenience store brands in North America, is reportedly undertaking a major portfolio realignment. The chain plans to close 444 underperforming stores across the United States, according to its parent company. These closures represent a small portion of the company’s approximately 13,000 locations across the U.S. and Canada.
The announcement was reportedly made during the company’s most recent earnings call, with the closures expected to take place in the fourth quarter of the year. Although a detailed list of affected stores has not been released, the company has reportedly identified them as underperforming, indicating they have not met internal benchmarks for operational or financial performance.
This decision reflects a broader strategy to optimize efficiency within the company’s large-scale retail network. Even for brands with substantial market penetration, regularly reassessing store viability remains essential. By closing select locations, 7-Eleven appears to be prioritizing long-term profitability and operational focus.
The financial landscape is undeniably complex, with even established names facing severe pressures that can lead to bankruptcy or significant restructuring. From iconic sports clubs navigating ownership woes to public housing authorities grappling with funding challenges, and major retail, pharmacy, and restaurant chains adjusting to shifting markets and debt loads, the stories we’ve explored paint a vivid picture of economic reality. These situations underscore the importance of sound financial management, adaptability, and sometimes, the necessity of drastic measures to seek stability or ensure survival in a challenging world. It’s a reminder that the business world is constantly in motion, and staying informed about these developments provides crucial insight into the forces shaping our economy.
