WeWork - Failure Museum

WeWork

Four years after having the highest startup valuation in the country at $47 billion, WeWork filed for bankruptcy in 2023. The business model was vulnerable to softening of the office market. WeWork signed 10-20 year leases, most during the office market peak in 2018 and 2019, while allowing tenants to sign month-to-month leases. As of June 2023, WeWork was paying over $2.7 billion a year in rent and interest – more than 80% of its entire revenue, while was still burning $300 million of cash a quarter. Its total losses since founding in 2010 topped $16 billion, which included reckless spending such as buying a $63 million jet and investing in an artificial wave company.

Rainwater

Rainwater Tech

Failed SPAC IPO in 2023 led to its demise. They aspired to be the leader in the development of rainfall generation technology.

Admiral Gardner

East India Company

Was the largest company in the world & accounted for half the world’s trade; recurring problems with finances led to it’s demise in 1874.

Midwest Express

Midwest Express

In 2010, deteriorating safety record and financial difficulties led to eliminating 2X2 seating and gourmet meals

Enron - Failure Museum

Enron

Enron’s downfall was caused by widespread accounting fraud, where executives used complex schemes and special purpose entities to hide billions in debt and inflate earnings, making the company appear more successful than it was. This deception led to its collapse in December 2001, the largest bankruptcy in U.S. history at the time, resulting in massive losses for employees and investors after the company had peaked at a $70B market cap. The scandal also led to the downfall of Enron’s auditor, Arthur Andersen, and spurred the enactment of the Sarbanes-Oxley Act (SOX) to prevent similar corporate misconduct. 

Olestra

Olestra

In 2000, chips with Olestra had 50% fewer calories but the body could not absorb the substance, which caused gastric cramps and diarrhea.

New Coke - Failure Museum

New Coke

In 1985, Coca-Cola reformulated Coke because they were losing market share to the sweeter tasting Pepsi-Cola.  Consumers rejected New Coke as they had a deep emotional attachment to the original Coca-Cola.  New Coke was discontinued 79 days after it’s release.

Busch

Busch Light Apple

Seasonal beer that hasn’t had the staying power of summer favorites like Leinenkugel’s Summer Shandy led to it’s demise in 2022.