floun·der1
verb
•be in serious difficulty.
“many firms are floundering”
synonyms: struggle financially, be in dire straits, face financial ruin, be in difficulties, face bankruptcy/insolvency, founder
“more firms are floundering”
: to experience failure : to be unsuccessful
of a boat or ship : to fill with water and sink
To flounder is to struggle, but to founder is to sink like a stone and fail. Both are fun as nouns, not so fun as verbs.
So, in the context of the article either could work. But you're probably right that 'flounder' would work better.