Most consumers have the wrong perception that when a company files for bankruptcy, they are signaling the end of their history. We’ve seen it with huge names recently, such as Neiman Marcus, JcPenny’s and Forever 21.
However, some companies show that bankruptcy could be a game-changer in the future of their business. You just need to know how to use bankruptcy as a tool and learning experience for your company to grow.
Seven companies that came back
Most consumers and entrepreneurs aren’t aware of how many iconic companies filed for bankruptcy during their lifetime. Some of the most surprising include:
- Apple – The iconic products of the iPod to the Macbook may never have seen the light of day if they didn’t file for bankruptcy in 1997. Microsoft was a huge factor as the company invests $150 million into Apple after the initial filing.
- Delta Air Lines – One of the largest airlines filed for bankruptcy in 2007 after curing jobs and reducing labor costs. Delta ended up becoming one of the American leaders in domestic and international flights by 2019.
- Six Flags – Most families associate Six Flags as a family getaway. But even theme parks suffer economic trouble and turn to the courts for relief. The company filed in 2009 and emerged in 2010. They’ve been increasing their revenue ever since.
- General Motors – After the economic depression in 2008, many companies resorted to bankruptcy to keep themselves and their employees afloat. General Motors filed in 2009 and received a government bailout in 2013. Now, General Motors is recognized as one of the world’s best-run car companies.
- The Chicago Cubs – Even sports teams can file for bankruptcy in the right circumstances. The Cubs filed in 2009 and eventually emerged from bankruptcy along with a World Series win in 2016.
- Marvel Entertainment – Marvel films and comic books are modern-day staples for most folks. However, the company struggled in 1996 as they decided to file for bankruptcy. The company is now worth billions of dollars and is a subsidiary of Disney.
- Converse – One of the most historical shoe brands filed for bankruptcy in 2001. Nike would later buy the brand and bring the classic sneaker into the modern-day.
These examples illustrate the power that bankruptcy has to shape a company’s future. You can emerge from bankruptcy as a smarter business owner and adapt how your prioritize your finances.