It is possible to assimilate the bankruptcies of companies and industrial sectors as an unfortunate affair. However, from a more distant perspective, bankruptcy processes are, eminently, part of the world economy nature. They belong to an economic landscape, so to speak. What awaits us next year? We do not know for sure but some large companies will certainly file for bankruptcy in 2018 (or will surely be bankrupt next year,) and this allows us to make some forecasts of what we could expect for next year. Let’s see some examples.


Toshiba has been one of the giants of the Japanese electronics which has gained an excellent reputation in all its operations around the world. However, the sudden announcement of its excessive losses, added to the accounting irregularities detected two years ago, has left its reputation in tatters. The company is in danger of being withdrawn from the stock market, and its disproportionate debts push it to the edge of bankruptcy.

Sadly, Toshiba remains in a risky situation. The company fell into excessive debt after giant losses were reported in its US nuclear power sector in December last year. For this reason, the announcement of the financial results and the delivery of the financial report were significantly delayed. Toshiba prepares the sale of Toshiba Memory as a desperate measure against debt, but this million-dollar operation is taking time to take place.


This great chain of children’s clothing has already filed bankruptcy. It is, in fact, the most recent retailer to fall due to the rise of e-commerce. The company filed for bankruptcy in the Eastern District Court of Virginia and signed a restructuring support agreement with its lenders, which will reduce its debt by more than nine hundred million dollars. The matter began because Gymboree incurred the default of interest on bonds this year and, likewise, the financial director of the company, resigned his position for personal matters. The latter, unfortunately, also meant a huge loss.

Gymboree reported earlier this year that it had a capital deficit and could fall into bankruptcy if it failed to persuade creditors to support a refinancing. In fact, this company is operating with a billionaire debt because of the million dollar purchase of Bain at the beginning of this decade and has a loan of almost one billion dollars, which expires in February next year. Bain has continued to buy Gymboree’s debt to maintain a strong position in a bankruptcy process.

Read also: The Warning Signs Of Bankruptcy, by Suzzanne Uhland


This Asian manufacturer went bankrupt because it could not cope with the huge debt incurred in recent years. Such series of obligations had their origin in the replacement of millions of defective airbags worldwide. The malfunction of some devices has caused several fatal accidents and dozens of injured victims because they exploded at the time of the collision and threw pieces of metal from the encapsulation to the drivers. For this reason, the Board of Directors of Takata made public the decision to submit under judicial protection the possibility of restructuring its debt (a debt, in addition, that exceeds eight billion dollars.) This measure also affects the subsidiary company of the group in our country, TK Holdings. The Japanese stock market regulator suspended the price of the company’s securities, which in recent weeks had collapsed due to rumors of a possible bankruptcy. It is the biggest bankruptcy in Japan to date.

Payless ShoeSource

Image courtesy of Payless Shoes at

The shoe chain Payless announced that it will abide by the bankruptcy laws of the United States and Canada next year and plans to close hundreds of stores. The multinational firm based in the state of Kansas gathers more than one billion dollars in debt, so it has already presented the documents to formalize the bankruptcy in a court in Saint Louis. Payless extends this same measure to the justice of Canada. This measure seeks to simplify the restructuring of the company to balance the counts and ensure the continuity of the company in the future. With this decision, Payless announces the immediate closure of hundred stores in the United States and Puerto Rico, where the company has not had much success.

Toys R Us

Toys R Us is not having a good time. The company, the largest in the sector in the United States, has filed for bankruptcy to resolve its delicate economic situation. Through an official statement, the company has confirmed that it has accepted the protection of Chapter 11 of the Bankruptcy Court of the United States, harassed by its high level of debt and burdened by the changes in the consumption of buyers.

The company is owned by three private equity firms, which acquired the company more than a decade ago for 6.6 billion dollars. It has been a successful company, but Toys R Us draws now a debt that gets closer to five billion dollars. In fact, it must make an imminent payment of it in 2018. Their owners, by filing for bankruptcy, seek to restructure these debts.

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* Featured Image courtesy of Ishikawa Ken at