by KATERINA MARTINEZ
Staff Writer
Reported by 24/7 Wall Street, some well-known and popular companies may be gone by the end of 2011.
The current economic climate has increased, and for Wall Street to take less than a year to predict what companies may be gone is not a good sign.
Number one on the list is Reader’s Digest. Their issues are published all over the world, especially in the UK, and they have recently emerged from bankruptcy protection.
Although they have emerged from Chapter 11 bankruptcy with 75 percent less debt, the UK administrators are looking to sell the business as a going concern. If they fail, Reader’s Digest will have to stop publishing in the UK after 72 years of hard work.
Another top company that may disappear by 2012 is the popular movie rental store, Blockbuster. For two decades, Blockbuster has been the national leader of the movie rental business.
Over the years, they have kept their prices elevated and their late fees even more expensive. Meanwhile, new, smaller companies have taken over. For example, the Redbox machine and Netflix have lower prices, which, to most people, are better alternatives.
Last year, Blockbuster lost another $65 million and is now considering bankruptcy. They will not close all 6,000 of their stores, but around-the-corner locations will definitely disappear. While their walk-in business is dead, Blockbuster plans to stick around through a small DVD-by-mail business.
RadioShack is known as one of the oldest retailers in the country. During the 2010 fiscal year, their profits rose eight percent to $205 million and revenue rose one percent to $4.28 billion. Although their stores have been known around the world, the company has been getting bullied by Best Buy.
Best Buy has developed a smaller version of RadioShack, but with better prices and a wider variety of electronics. Sophomore Jaclyn Vogel says, “I only go to RadioShack when Best Buy doesn’t even have what I am looking for. It is basically my last resort.”
RadioShack is looking for a possible sale of the company for about $3 billion. If Best Buy takes over it, they will not keep RadioShack’s name. With the help of RadioShack, Best Buy plans to open 75-100 stores dealing mainly with mobiles.
The economy is changing and so is the rest of the world. Companies have to be able to adapt in order to survive.