Additional Coverage:
- 14 Struggling Companies That Might Not Survive 2026 (financebuzz.com)
Local Businesses Feeling the Squeeze: What to Watch for in 2026
Economic headwinds are making waves across the nation, and even well-known companies are facing tough decisions. Rising costs, shifting consumer habits, and growing debt are creating a challenging landscape, pushing many familiar brands to the brink. While not every struggling business will vanish, financial indicators suggest that 2026 could be a pivotal year for many.
For local residents looking to navigate these uncertain times, understanding which companies are struggling can help inform smarter spending choices and minimize potential disruptions. Here’s a look at some of the businesses facing significant challenges as we head into 2026:
1. Spirit Airlines: The ultra-low-cost airline sector has hit some turbulence, with Spirit Airlines entering bankruptcy proceedings again in 2025. Factors like rising fuel costs and aircraft delays have strained their finances, leaving analysts wondering if the airline can successfully regroup and continue flying into 2026.
2. iRobot: The company behind the popular Roomba vacuum filed for Chapter 11 bankruptcy protection late last year. After years of declining demand and intense competition from more affordable alternatives, along with failed acquisition plans, iRobot is now undergoing a restructuring that raises questions about its future as an independent company.
3. Target: Even retail giants like Target are feeling the pinch.
They’ve reported several quarters of slow sales growth as inflation-weary shoppers tighten their belts. Inventory missteps and fierce competition from other big-box stores are forcing the company to re-evaluate its pricing and merchandising strategies.
4. Claire’s: This long-standing accessory haven continues to grapple with dwindling mall traffic and a decrease in demand for teen accessories. Claire’s filed for bankruptcy in August 2025, as rising lease costs and stagnant sales put hundreds of its remaining locations at risk if a buyer isn’t found.
5. Family Dollar: While not yet in bankruptcy, Family Dollar is undergoing significant changes.
Its parent company, Dollar Tree, is closing hundreds of stores following declining sales. This restructuring leaves the long-term viability of Family Dollar in question if economic conditions don’t improve.
6. Porsche: Even luxury brands aren’t immune to economic pressures.
Porsche has warned that restructuring costs and expenses from U.S. tariffs could impact their earnings, with a reported 99% drop in operating profit for the first nine months of 2025. This signals that even high-end automakers are feeling the squeeze.
7. REI Co-op: In January 2025, REI announced the closure of its “Experiences” business and laid off 428 employees due to softening sales. This move indicates that even outdoor lifestyle brands are seeing consumers cut back on discretionary purchases, prompting the co-op to focus on profitability.
8. Walgreens: The pharmacy chain is planning to close over 1,000 stores in the coming years after reporting declining profits and reduced foot traffic. With a net loss of $8.6 billion in 2024, Walgreens is grappling with reimbursement pressures and theft concerns, making its long-term brick-and-mortar strategy, and its future in 2026, uncertain.
9. GameStop: Despite an improved adjusted net income, GameStop continues to face declining net sales as physical video game purchases become less common. While the company has implemented cost-cutting measures, store closures and shrinking revenue raise questions about its long-term relevance beyond 2026.
10. Forever 21: This fast-fashion retailer has closed all of its brick-and-mortar stores in the U.S. after filing for bankruptcy again. While the brand hopes to survive online, years of declining mall traffic and intense competition have severely weakened its once-dominant retail presence.
11. 7-Eleven: Even convenience stores like 7-Eleven are experiencing challenges.
U.S. locations have seen declining foot traffic and revenue this year, with hundreds of stores closing in the past two years. This raises concerns that even essential retail may struggle if inflation continues to impact everyday spending.
12. Torrid: Once a leader in plus-size fashion, Torrid has reported falling sales and announced plans to close 30% of its brick-and-mortar locations in 2025 – approximately 180 stores. Without stronger demand, additional closures in 2026 wouldn’t be surprising.
13. Foot Locker: Foot Locker has reported net losses and declining sales recently, with plans to close several underperforming stores. Increased competition from direct-to-consumer brands is cutting into profits, forcing the retailer to revamp its store strategy to stay afloat.
14. Procter & Gamble: Even major consumer goods companies like Procter & Gamble are feeling the pinch. After more than a year of declining sales, the company announced plans to reduce its workforce by up to 7,000 jobs as part of a restructuring effort to address margin pressures from tariffs and global cost increases.
The Bottom Line for Our Community
Seeing familiar companies struggle can be unsettling, but it also serves as a timely reminder to be adaptable with our spending habits. Exploring smart ways to save money on essentials and adjusting where we shop can help protect our household budgets if these closures or struggles impact our favorite retailers. Finding smart ways to save, especially during uncertain economic times, can make a meaningful difference as 2026 approaches.
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- 14 Struggling Companies That Might Not Survive 2026 (financebuzz.com)