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Going out of business

Big-Name Startups Land on Most-Doomed Brands List

Entrepreneur Staff
Director of the Entrepreneur Partner Studio
2 min read

Could one of your favorite startup companies cease to exist next year? While the survival rate for startups is obviously challenged, one website thinks some big-name startups are headed for disaster.

Each year, the editors at business website 24/7 Wall St. compile a list of companies they believe could quickly go out of business. This year's list features companies large and small -- some which you may know very well.

  1. Lululemon
  2. DirecTV
  3. Hillshire Brands
  4. Zynga
  5. Alaska Air
  6. Russell Stover
  7. Shutterfly
  8. Time Warner Cable
  9. Blackberry
  10. Aeropostale

Topping the list, as you can see, is Lululemon, the yoga retailor that has fallen victim to a series of missteps. Last year, it was revealed that some of its pants were see-through. Founder Chip Wilson didn't help things when he claimed that "some women's bodies just don't actually work" for the clothing. Wilson later resigned as chairman of the Vancouver, British-Columbia-based company but continues to fight its board for control.

Related: 10 Lessons to Learn From Failing Startups (Including My Own)

In ranking Lululemon the No. 1 company that's likely to disappear in the next 18 months, 24/7 Wall St. also noted heavy competition that the specialty retailer is feeling from larger companies like Gap, which are moving "aggressively" into the yoga pants space. Lululemon also won no PR awards after banning customers who had sold Lululemon products on eBay from buying merchandise online.

Also on 24/7 Wall St.'s list is Zynga, a video-game company that once experienced lightning-fast growth but has sputtered lately, unable to find success post "Farmville." Image-publishing startup Shutterfly also made the list at No. 7.

Among the criteria used to determine this list, 24/7 Wall St. looked at things like declining sales and losses, rising costs that are unlikely to be recouped through higher prices, and withering market share, among other factors.

Related: Is it Time to Give In? How to Know for Sure.

What do you think about the companies on this list? Let us know in the comments below.

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