3 Major Brands That Have One Foot in the Grave.

Some major companies in the U.S were in the process of creating new marketing communication plans to help their underperforming businesses but failed to do so in time for the onset of COVID-19 pandemic.  COVID-19 like the Grim Reaper has sucked the soul out of several brands while leaving others on their last lifeline. It seems as if these brands didn’t understand the importance of continuous marketing communication and how it contributes to the brand’s performance and ultimately the brand’s survival. Here are the 3 brands whose days are numbered if they don’t reposition themselves in time.

1. California Pizza Kitchen

Oh Nooooo not CPK. On July 30 CPK filed for Chapter 11 bankruptcy and have closed nonperforming locations. It was stated that CPK was pursuing a strategy to gain new customers and retain the existing customers by relying on takeout and delivery services and launching meal kits to allow consumers to make CPK signature entrees at home. Let’s hope this plan will allow them a speedy recovery.

•  24 Hour Fitness

Now this one hit home being that I am a member. On June 15, 24 Hour Fitness filed for Chapter 11 bankruptcy and have permanently closed 100 locations. 24 Hour Fitness CEO Tony Ueber stated “if it were not for Covid-19 and its devastating effects, we would not be filing for Chapter 11″. The team at 24 Hour Fitness will use this time to create a marketing plan to introduce new innovative products and services hoping to bring themselves back to life.

• Neiman Marcus

Neiman Marcus has been another company hunted by the COVID-19 Reaper. On May 7 Neiman filed for Chapter 11 bankruptcy looking to eliminate $4 billion in debt. Neiman was enhancing their “Digital First” strategy to engage customers more but COVID-19 eliminated those plans. Neiman Marcus had recently received their lifeline and found the investors needed to end their bankruptcy.

References:

CNBC (2020, September 25) Neiman Marcus emerges from bankruptcy. Retrieved from https://www.cnbc.com/2020/09/25/neiman-marcus-emerges-from-bankruptcy.html

DiMartino, M. (2020, August 10) California Pizza Kitchen Plans to Emerge From Bankruptcy This Fall. Los Angeles Business Journal. Retrieved fromhttps://labusinessjournal.com/news/2020/aug/10/california-pizza-kitchen-plans-emerge-bankruptcy/

Pandise, E. (2020, May 13) From Century 21 to Lord & Taylor, Main Street bankruptcies continue as pandemic deepens. NBC News. Retrieved from https://www.nbcnews.com/business/consumer/which-major-retail-companies-have-filed-bankruptcy-coronavirus-pandemic-hit-n1207866

Tucker, H. (2020, May 3) Coronavirus Bankruptcy Tracker: These Major Companies Are Failing Amid The Shutdown. Forbes. Retrieved from https://www.forbes.com/sites/hanktucker/2020/05/03/coronavirus-bankruptcy-tracker-these-major-companies-are-failing-amid-the-shutdown/#19b4be6a3425

Valinsky, J. (2020, June 15) 24 Hour Fitness files for bankruptcy and closes 100 gyms. CNNRetrieved from https://www.cnn.com/2020/06/15/investing/24-hour-fitness-bankruptcy/index.html