If you’re considering bankruptcy, you might be thinking it’s the end of a fortunate financial future. While bankruptcy is serious business, it doesn’t have to evoke thoughts of failure and feelings of fear. Not only have many people found a successful way forward out of debt through a bankruptcy filing, but businesses have also used bankruptcy to help them get back on track.
If you’re worried that bankruptcy is a one-way road to ruin, here are some examples to draw inspiration from.
Brands that have bounced back from bankruptcy
- Apple: The most well-known company on this list might not technically count, as Apple was only on the verge of bankruptcy in 1997, but they still stand as a worthy example as an organization that can come back to become successful and profitable after being on the brink of financial disaster.
- Marvel Entertainment: Marvel is practically a household name right now, with celebrity names from all over the globe attached to their projects. Marvel is certainly not in a tight spot financially today, but they entered bankruptcy in 1996 and by 1998 exited bankruptcy to go on to become the successful comic and entertainment empire they are today.
- Delta Airlines: Many airlines struggled in the early 2000s and Delta entered bankruptcy in 2005. By 2007, they had exited bankruptcy and continue to serve customers on flights all over the globe.
- Sbarro’s Pizza: This chain restaurant came back from bankruptcy not once, but twice. With restructured bankruptcy settlements filed in both 2011 and 2014, this pizza place has managed to stay in business and serve hungry mall patrons all over the country.
- Rangers and Cubs: Sporting clubs are businesses too, and therefore subject to bankruptcy. Lackluster ticket sales and low merchandise revenue led to both the Texas Rangers and Chicago Cubs filing for bankruptcy in 2010 and 2009 respectively. As any MLB fan knows, both teams went on to engage in America’s pastime and even win a World Series or two along the way.
- General Motors: GM and the car companies under its brand umbrella made news in 2009 when they filed for bankruptcy. The car industry was seen as a robust, almost certainly recession-proof business, as it was reasoned that people would always need transportation. They filed Chapter 11 with a debt of over $30 billion dollars. Through a combination of government relief funds and a radical corporate bankruptcy restructuring plan, they were able to weather their financial storm.
- Kodak: With the invention of smartphones, digital cameras, and the cloud, fewer people were paying for printed photos and traditional photography equipment. Kodak was hit hard by this technological disparity and filed for bankruptcy in 2012. In 2013, they emerged from bankruptcy, rebranded as a technology company, poised to support imaging needs for businesses. This bankruptcy restructuring and rebrand allowed them to move forward. In fact, bankruptcy helped position them as a stronger economic contributor by allowing them to continue to develop and sell products as well as keep a workforce employed.
While bankruptcy laws and procedures haven’t been able to save every business that’s been in financial trouble, it has certainly been able to provide options for businesses. The same is true for people. The bankruptcy laws are different for companies, but between Chapter 7 and Chapter 11 individual bankruptcy laws, you have financial options. Bankruptcy can stop creditor calls, stop wage garnishment, free up your future earnings, and help you find your financial footing again.
We’ve worked with families all over Utah, and we can tell you from experience: there is life after bankruptcy. Let us help you find your fresh start with a free consultation today.