Apple (AAPL) was on the verge of going bust in 1997. At the last minute, arch-rival Microsoft (MSFT) swooped in with a $150 million investment and saved the company. People have speculated that Microsoft only did so because it was worried that regulators would regard it as a monopoly without the competition from Apple in the marketplace. Later Microsoft admitted that inviting in Apple was the biggest mistake ever.
American began capacity cuts on July 1, 2012 due to the grounding of several aircraft associated with its bankruptcy and lack of pilots due to retirements. American's regional airline, American Eagle, was to retire 35 to 40 regional jets as well as its Saab turboprop fleet. American ceased its service to Delhi, India in March 2012.Then American Airlined exited the bankruptcy on 8th of decmber 2013. By early 2014, AMR and US Airways Group had completed a merger to form the world's largest airline, American Airlines Group. Despite the new company's hefty bankruptcy costs and court settlements, 2014 was American Airlines' first profitable year since 2007, CNN
In 2013, Ashley Stewart was on the brink of bankruptcy, its second in a little over three years. Decades of operating losses and rampant turnover in both the employee base and ownership group had cemented a fearful culture. Prospects were looking grim; local stores were shutting down left and right, and investors weren't eager to be associated with what appeared to be another failing retailer. But executive chairman and CEO James Rhee had a vision to reinvent Ashley Stewart as an e-commerce and social-media-driven company. The brand's saving grace came in the form of a buyout by private equity firm Clearlake Capital, which purchased Ashley Stewart just one month after the bankruptcy filing. The company began to rebuild under Rhee's leadership, and currently has plans to relaunch its mobile site, develop a blog and create new content for its YouTube channel, Ashley TV, according to a March 2015 Plus Model Magazine article. When asked how the company was able to pull through its financial woes, Rhee told Business News Daily that it took "vision, mission and resolve, and the ability and willingness to embrace full transparency in the hopes of unifying and mobilizing an army of believers and doers."
Though her fashion company is thriving today, designer Betsey Johnson fell on hard times just a few years ago. Profits fell drastically from their $150 million peak in the mid-2000s, and in April 2012, Betsey Johnson LLC filed for Chapter 11 bankruptcy, even after Steve Madden purchased the company's outstanding debts and licensing agreements in 2010. This resulted in 350 layoffs and the closing of nearly all Betsey Johnson retail stores, according to The New York Times. But that didn't stop Johnson: the Times article reported that by the end of 2012, she had already started to rebuild her company by introducing a new, lower-priced line of dresses that still embodied her classic, whimsical style. Last year, with online sales still holding strong, Johnson told Racked.com that e-commerce has "proven to be what keeps businesses kicking."
The economic recession of 2008 brought bankruptcy upon a number of high-profile corporations and financial institutions. Among them was General Motors (GM), one of the most important and influential companies in American history. Founded in 1908, the once-powerful auto manufacturer ended its 100th anniversary year with a debt of more than $30 billion. It filed for Chapter 11 bankruptcy in June of 2009, and with the help of government funding and a radical restructuring plan by corporate bankruptcy expert Jay Alix of AlixPartners, GM made an initial public offering in 2010. The company was profitable again by the end of that year, and it's only continued to thrive, with a July 2015 earnings release showing a net income of $1.1 billion. Alix shared his side of the GM recovery story in a 2013 Forbes article.
Following the financial crisis of 2008 and the Great Recession, General Motors(GM), once the largest automobile manufacturer in the world, filed for bankruptcy and was ultimately bailed out by the federal government. Since then, the company has paid back its entire rescue package, earning the government a tidy profit on the venture, and is in its best financial shape in more than a decade.
For more than 100 years, the Eastman Kodak Company was a giant of the photographic film industry. But like many older companies, Kodak became a victim of changing times and technologies. As digital photography entered the mainstream in the late 1990s and early 2000s, the company's film sales floundered. Kodak struggled to keep up with the transition to digital, and ultimately filed for Chapter 11 bankruptcy in January 2012. After nearly two years of corporate reorganization, a new Kodak emerged in September 2013, branding itself as a "technology company focused on imaging for business," according to the company's website. Though its quarterly profits have declined since Democrat & Chronicle reported a $19 million high for the company in 2014 Q3, Kodak seems to have weathered the worst of its financial woes.
Ally bank, now Ally Financial (ALLY), was the auto-financing arm of General Motors, extending credit to purchasers of its cars. The bank was bailed out alongside its parent to the tune of $17 billion by the U.S. Treasury Department. The company has emerged as a profitable business with a market capitalization of $11 billion and just reported better than expected earnings, double analysts expectations.
General Motors wasn't the only car maker to go bust in 2008. American car manufacturer Chrysler was actually the first to fall. Despite a $4 billion government bailout package, the company was forced to declare bankruptcy in 2009. It was later purchased by European car maker Fiat and has seen above average success and growth since.
It is surprising to note that "THE MARVEL ENTERTAINMENT" company filed for bankruptcy in 1996. This was before the company got into the movie-making business, when it focused solely on comic books. Today, the company's properties are worth billions of dollars with millions of fans around the world.
Theme park operator and amusement company Six Flags has 18 regional theme and water parks throughout North America, home to some of the world's biggest and fastest roller coasters. In 2009, however, the company declared bankruptcy after racking up more than $2.5 billion in debt which it could not pay back.
Now part of Chevron (CVX), Texaco was once one of the most dominant integrated oil companies in the world. A legal dispute with competitor Pennzoil in the 1980s however caused it to file bankruptcy: Pennzoil asserted that Texaco owed it $10.5 billion, which Texaco couldn't pay.
Sbarro operates and franchises more than 1,100 fast-food style pizza and Italian-food restaurants worldwide. Sbarro went bankrupt twice: first through a Chapter 11 bankruptcy reorganization in 2011 and then again in 2014. The company has re-emerged with the help of a collaboration of private equity firms to transform the company's image to a more fast-casual style, rather than its previous kiosk or food counter concept.