Earlier quoted context omitted.
Bad development practices can and do kill companies, although in those cases the cause of death is usually considered "failed to innovate" or something similar. Accumulate enough technical debt and you'll be unable to move very quickly for fear of breaking things. After code starts breaking expect to add processes on top of processes, which may stop the breakage but only slow things down even further. That's not to s…
As I asked in my response, Please provide examples. Bad coding does not mean 'failed to innovate'. Digg.com innovated with the Digg button, but according to Kevin they had a bunch of 'bad coders' doing 'bad coding'.
There are many, many companies that fall into that category but if you want a direct example of bad coding -> failure then look at Friendster:
"But the board also lost sight of the task at hand, according to Kent Lindstrom, an early investor in Friendster and one of its first employees. As Friendster became more popular, its overwhelmed Web site became slower. Things would become so bad that a Friendster Web page took as long as 40 seconds to download. Yet, from where Mr. Lindstrom sat, technical difficulties proved too pedestrian for a board of this pedigree."
http://www.nytimes.com/2006/10/15/business/yourmoney/15frien...
There is hardly ever a single reason why a company fails, but site performance and the inability/unwillingness to address it played a large part in Friendster's decline.