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Economic uncertainty is forcing even long-established companies to make painful decisions. Rising costs, changing consumer habits, store closures, and mounting debt are pushing many recognizable brands to the edge. And while not all of these companies will disappear, warning signs suggest 2026 could be a make-or-break year.
For consumers, especially those looking to prepare themselves financially and withstand economic downturns, understanding which companies are struggling can help them make smarter spending decisions and avoid disruptions. Here are 16 well-known businesses facing serious challenges heading into 2026.
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Spirit Airlines
Spirit Airlines entered bankruptcy proceedings again in 2025, highlighting ongoing struggles in the ultra-low-cost airline sector. Rising fuel costs, aircraft delays, and weak travel demand may have strained finances, leaving analysts uncertain whether the airline can successfully restructure and continue operating into 2026. According to Reuters, in the three months to end-June, Spirit reported a net loss of $246 million.
iRobot
iRobot, the company behind the Roomba, filed for Chapter 11 bankruptcy protection in late 2025 after years of declining demand and intense competition from cheaper robot vacuums. Failed acquisition plans and mounting losses forced the company into restructuring, raising doubts about its long-term independence.
Target
Target has faced multiple quarters of sluggish sales growth as inflation-weary shoppers cut back on discretionary spending. Inventory missteps and fierce competition from Walmart and other companies have weighed heavily on profits, forcing leadership to rethink pricing and merchandising strategies.
Claire's
Claire's continues to struggle with declining mall traffic and shrinking teen accessory demand. The company filed for bankruptcy in August 2025, as lease costs rose and sales stagnated, putting hundreds of remaining locations at risk if a buyer cannot be secured.
Family Dollar
Family Dollar, while not in bankruptcy as of mid–2025, has been sold off and is closing hundreds of stores under parent brand Dollar Tree following declining sales and restructuring, making its long–term viability an open question if conditions don't improve.
Porsche
Porsche warned that restructuring costs associated with the realignment of their product and expenses from U.S. tariffs strategy could squeeze earnings ahead. According to a press release from the company, Porsche saw a 99% drop in operating profit for the first nine months of 2025. This could be a sign that even luxury automakers aren't immune to economic headwinds.
REI Co-op
In January 2025, REI announced it would be shutting its Experiences business amid softening sales, signaling that even outdoor lifestyle brands are contending with consumers cutting back on discretionary purchases. As a result, 428 employees were laid off, and the company has previously stated hopes of working toward profitability.
Walgreens
In October, Walgreens announced plans to close more than 1,000 stores over several years following declining profits and reduced foot traffic. According to Advisory Board, Walgreens reported a net loss of $8.6 billion in 2024, which was almost triple the amount from a year prior.
The pharmacy chain has struggled with reimbursement pressures and theft concerns, putting its long-term brick-and-mortar strategy in jeopardy and its future uncertain in 2026.
GameStop
Though the company reported an adjusted net income of $139.3 million, an improvement from the previous year, GameStop continues to face declining net sales as in-store physical video game purchases fade. Total revenue fell by 4.5% in the third quarter of 2025. Despite cost-cutting efforts and occasional profit spikes, store closures and shrinking revenue raise doubts about the retailer's ability to remain relevant beyond 2026.
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Forever 21
Forever 21 shut down all 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 fast-fashion competition have severely weakened its once-dominant retail presence.
7-Eleven
7-Eleven's U.S. locations have faced declining foot traffic and revenue this year. Store closures and franchisee disputes have increased, with hundreds of locations being shuttered in the past two years, raising concerns that even convenience retail like 7-Eleven may struggle if inflation continues to squeeze everyday spending.
Torrid
Torrid, once a standout in plus-size fashion, has reported falling sales, and in 2025, the company announced plans to close 30% of its brick-and-mortar locations. That's approximately 180 stores. It wouldn't be surprising if, without stronger demand, additional store closures followed in 2026.
Foot Locker
In recent quarters, Foot Locker has reported net losses and declining sales, and has plans to close several underperforming stores amid declining mall traffic and weaker sneaker demand. These closures come amidst the recent acquisition by Dick's Sporting Goods in September. Increased competition from direct-to-consumer brands has cut into profits, forcing the retailer to overhaul its store strategy to try to survive.
Procter & Gamble
Even major consumer goods firms aren't immune: After more than a year of reporting declining sales, Procter & Gamble announced plans to reduce its workforce by up to 7,000 jobs as part of a broader restructuring that highlights margin pressures from tariffs and global cost increases.
Bottom line
Watching familiar companies struggle can be unsettling, but it's also a reminder to stay flexible with your spending habits. Exploring smarter ways to save money on essentials and adjusting where you shop can help protect your budget if closures affect your favorite retailers.
Finding a smart way to save money, especially during uncertain economic times, can make a meaningful difference as 2026 arrives.
More from FinanceBuzz:
- 12 ways to pocket up to $300
- Are you a homeowner? Get a protection plan on all your appliances.
- 10 little weird hacks Costco shoppers should know.
- Learn how to escape the paycheck-to-paycheck grind.
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