Bankruptcy is a term often used to describe
the 'end' of any successful and (guess what?) not-so-successful corporation.
Now it is good to know that aside from your usual 'we got no money' routine,
bankruptcy can be filed under several pretenses, adhering to different
economic and federal laws.
Bankruptcy is actually pretty convenient, for it
protects the remainder of your assets from the sticky hands of greedy debt
collectors and ensures that you won't be going to the poorhouse, at least not
soon. Long story short here are the top 5 shocking corporate bankruptcies of
all time.
THQ
Have you ever heard such an outrageous
thing before in your entire life? THQ, the video game company that brought us
such delights as the WWE gaming franchise, as well as some other titles that I
don't feel mentioning, is now filing for bankruptcy and it doesn't look like
they will be making much of a comeback in the upcoming months.
Anyway, they
filed for a Chapter 11 bankruptcy, which essentially means that they will be
continuing their work, only they would be supervised and monitored to make sure
they are not skimming off the top every now and then.
Even though many
wrestling fans were left questioning the reason behind this truly, truly
shocking bankruptcy, we can only assume that they got what was coming to them
and we do hope that THQ will make at least an attempt to recover its
position in the WWE games.
Eastman Kodak
If you open your baby picture album right
now and look at the back of the photos, you will undoubtedly see that most of
those have 'Kodak' written somewhere in big transparent letters.
But just like
an old Kodak photo exposed to the elements, the company is struggling to make
ends meet and is effectively forced to sell their most valued photography
patents to their former competitors to pay their creditors and crawl
out of the pit of despair that had formed around their feet.
The reason behind
Kodak's grandiose failure was its ineffectiveness in mastering digital
photography when it was still a new thing.
Ever since then people have switched
their preferred picture-taking method from analog to digital, leaving the
company barefoot and stranded between two totally different concepts of photo-making. That is why the company will now be focusing on printing rather than
photography.
General Motors
The business world is still reeling from
the loss of America's biggest automobile manufacturer and exporter General
Motors.
They had a little bit of trouble starting at the beginning of the
century and slowly but surely, they moved their way up the debt staircase when
on the 1st of June, 2009; in front of the Manhattan New York federal bankruptcy
court, GM (General Motors)
filed their Chapter 11 bankruptcy want.
The company was in debt for $172, 810, 000, 000, while only making about
$82 billion in revenue. They had to discontinue making such car brands as
Hummer, Saab, Pontiac, and Saturn with no note of those brands ever resurfacing
to grace us with their mechanical excellence ever again.
Delta Air Lines, Inc.
Everyone who has at least once flown with
Delta knows about their outstanding reputation as being America's top airline
for well over 76 years! But like all good things, Delta Air Lines had to hand
in its towel and filed for bankruptcy in 2005. This process was as swift as it
was surprising to many financial authorities.
Although this situation had put a
lot of strain on the company's overall market value, over the last 5 years
Delta has made clear that it would not surrender its position as being
America's top airline company, scoring record profits and keeping its passengers
safe and satisfied.
The history of corporate bankruptcies is filled with notable cases that have shocked industries and markets worldwide.
From iconic brands like Kodak to industry giants like General Motors and Delta Air Lines, these examples serve as cautionary tales of the ever-changing dynamics of the business landscape.
The collapse of THQ, a prominent video game company, underscores the volatile nature of the entertainment industry and the importance of adaptation in a rapidly evolving market.
Similarly, Kodak's failure to embrace digital photography highlights the risks of complacency and the need for innovation to stay competitive.
The bankruptcy of General Motors symbolizes the profound impact of economic downturns on even the most established corporations, while Delta Air Lines' resilience demonstrates the potential for recovery and reinvention in the face of adversity.
These corporate bankruptcies serve as valuable lessons for businesses of all sizes, emphasizing the importance of financial prudence, strategic foresight, and adaptability in navigating the complexities of the global economy.
By learning from the mistakes and successes of these companies, organizations can better prepare themselves to withstand challenges and thrive in an ever-changing business environment.
