Top 10 Companies Destroyed by HORRIBLE Leadership

A kid in a candy store is one thing. A kid in Toys “R” Us was nirvana. Everyone’s childhood died a little in 2017 when the retailer first filed for bankruptcy, eventually closing all US locations and many international sites. Although the brand has staged a minor comeback, it’s far from the toy dynasty it once was. Aside from struggling to compete with online retailers like Amazon (a former business partner), Toys “R” Us entered a $6.6 billion leveraged buyout in 2005. This came with an annual $400 million interest payment, accumulating nearly $5 billion in debt. Although this was the straw that broke Geoffrey the Giraffe’s back, management made other costly ventures like a Times Square location that closed after roughly 15 years.

Following games featuring characters from “Back to the Future,” “Sam & Max,” and “Homestar Runner,” Telltale produced a monster hit with 2012’s “The Walking Dead.” What seemed like the pinnacle of success was the beginning of the end. While Telltale leapt at the opportunity to produce more IP-driven games, this led to increased “Crunch Time.” The long hours negatively impacted employees, many of whom felt the games had grown formulaic under Kevin Bruner’s allegedly toxic leadership. Even after Pete Hawley replaced Bruner, a quarter of Telltale’s workforce was laid off. By the next year, 90% was gone amid a majority studio closure. With most of its assets going to LCG Entertainment, Telltale’s reversal of fortune sums up the phrase, “a flame burns brightest before going out.”

Bed Bath & Beyond suffered the same fate as several other retailers that fell behind the times. As more consumers embraced the convenience of online shopping, CEO Steven Temares’ business model was seen as “old-school.” After nearly a decade and a half, Temares was pressured to resign in 2019. The company still struggled to catch up with the competition under the leadership of Mark Tritton, who started replacing popular brands with private-label ones. Cutting back on coupons also alienated loyal patrons. Amid other financial missteps - not to mention the pandemic - Tritton exited in 2022. Sue Gove filled the position shortly before the chain filed for bankruptcy the following year. The Bed Bath & Beyond name fell under the ownership of Overstock.com, which rebranded as Beyond, Inc.

At its peak, WorldCom rivaled only AT&T in the long-distance telecommunication business. After merging with MCI in 1997 for a then-unprecedented $37 billion, the brand might’ve seemed too big to fail. The illusion of success started to unravel in 1999. Not only did a Sprint merger fall through on Bernard Ebbers’ watch, but the co-founder and CEO committed fraud to preserve the company’s stock price. Over the next three years, an internal audit revealed $3.8 billion that hadn’t been properly booked. That number eventually grew to $11 billion. Ebbers was found guilty of fraud and conspiracy, earning a 25-year sentence. Ebbers died shortly after being released from prison. Meanwhile, WorldCom filed for bankruptcy before being acquired by Verizon.

Long before Apple or Microsoft, there were two engineers in a garage named Bill Hewlett and David Packard. The duo laid the groundwork for a tech company that would endure for more than 80 years. Hewlett-Packard’s downward spiral arguably began toward the turn of the century. With the company already on shaky ground, newly named CEO Carly Fiorina sought a merger with Compaq. Although Hewlett-Packard emerged as the largest personal computer company, the merger wasn’t as profitable as hoped, culminating in Fiorina’s forced resignation in 2005. Over the next decade, Hewlett-Packard lacked a clear vision, which was reflected in its revolving door of CEOs. After years of mismanagement, the company ultimately split in two with Hewlett Packard Enterprise and HP Inc. founded in 2015.

In the blink of an eye, what was once seen as revolutionary can become obsolete. Entering the 21st century, BlackBerry established itself as the smartphone. The device stood out thanks to its slick keyboard, sucking users in with every click. Although the keyboard was initially a selling point, it also marked BlackBerry’s downfall as Apple unveiled the iPhone. Apple cut out the physical keyboard with a touchscreen, an innovation that BlackBerry co-founder Mike Lazaridis was slow to welcome. Even after finally jumping on the touchscreen bandwagon, BlackBerry’s products were generally seen as dated compared to rivals like Apple and Android. While those two titans continued to push forward, BlackBerry always remained a step behind before inevitably going defunct in 2022.

For decades, it was hard to imagine a world without Blockbuster or video stores for that matter. With the rise of streaming, though, Blockbuster was destined to either adapt or die. Blockbuster attempted to evolve with online DVD rentals and a streaming service. By this point, Netflix had firmly established itself as the streaming king. That said, Blockbuster sealed its fate back in 2000 when then-CEO John Antioco turned down a $50 million offer to purchase Netflix. Under the leadership of Antioco’s successor, James Keyes, Blockbuster filed for bankruptcy. Dish Network purchased the floundering company with Michael Kelly being named CEO, but the investment wouldn’t pay off. If Blockbuster was a sinking ship, then we guess the sole location in Oregon is the life preserver.

The Weinstien name was once synonymous with prestige cinema. Brothers Harvey and Bob Weinstein established themselves as major Oscar players at Miramax before founding their eponymous company in 2005. Harvey, in particular, was among the most respected moguls in Hollywood. He was also one of the most feared. The masses wouldn’t learn why until 2017 as numerous women - some former employees - spoke out about Weinstein’s years of sexual misconduct allegations. The Weinstein Company was quick to sever ties with its co-founder, but Harvey left a stormcloud over the studio that never went away. As Weinstein entered a legal battle, ultimately being found guilty, the company he built endured bankruptcy. Lantern Capital acquired the company’s assets, while the Weinstein name is forever shrouded in infamy.

Elizabeth Holmes seemed like an entrepreneur who was bound to change the world. Once valued at $9 billion with over $400 million raised, her company Theranos introduced game-changing blood tests that could deliver quick, accurate results with just a drip of blood. At least, that’s what Holmes and colleagues like Sunny Balwani had everyone believing. In reality, Theranos was a colossal lie that defrauded investors and gave countless people false hope. It’s mindboggling that Holmes and Balwani got away with this scam for as long as they did. Once the whistle was blown, it was only a matter of time until Theranos went down the tubes along with its founder. You can’t always blame a company’s failure on one person, but Elizabeth Holmes was Theranos.

Even almost two decades later, Enron immediately comes to mind when people think of fallen corporate giants. If anything, the fall of Enron left such a lasting imprint that it’s hard to remember anything about the rise. Maybe that’s because this energy company wasn’t nearly as successful as executives led investors to believe. Through accounting loopholes, off-balance-sheet partnerships, and other deceitful tactics, Enron managed to hide billions in debt before this volcano of lies finally erupted. Kenneth Lay, Jeffrey Skilling, and Andrew Fastow are just some of the leaders who guided the disgraced company to bankruptcy in 2001. The aforementioned names all faced legal action while Enron officially died in 2007. Enron lives on as a punchline. Go visit Enron.com and you’ll see how.

Can you think of any other companies that failed due to bad leadership? Let us know in the comments.