Every business owner has his high hopes that his company will be on top of its sales and success. This is the greatest goal any entrepreneur wishes to achieve. You may burn a lot of candles, work tirelessly on weekdays and weekends, even bring out your entire savings just to make your business on that level. Still at some point there will be hard rocks that will be visible on the road and your investment might just hit a big one: bankruptcy.
As defined by Investopedia, “Bankruptcy is legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor (most common) or on behalf of creditors (less common). All of the debtor’s assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations incurred prior to filing for bankruptcy.”
By looking at the definition provided earlier, bankruptcy is a process that any businessman wishes to avoid but can be inevitable if there are circumstances that will cause financial difficulties. As a matter of fact, there are famous companies that have been on this painful path. As shared by BusinessInsuranceQuotes.Org, there are at least 10 popular brands that have declared bankruptcy. Some of them were able to make it out while others just ended or still struggling. Let’s take a quick look on these businesses and see which you recognize.
At the top of the article’s list is Kodak. This photography company was so well-known that everyone relied on them for good photos. But with the entrance of digital imaging, things got tough and sales may be declining unlike before.
Next in line is Enron who was once the powerhouse for electricity and natural gas. The company actually had some shocking issues that made them get into this bankruptcy page. Blockbuster is another one which was the go-to place for movies and entertainment. Like Kodak, it was hardly hit by digital technology make it soar downwards.
In the world of automotive the bosses Schwinn Bicycle Company and General Motors have also had this financial issue. However, there was a twist for the better for General Motors since the company has somehow bounced back to prosperity after several changes and risks were made.
Marvel Entertainment which is known for its heroic characters has made it to the list as well. To save it up, some merges and reformatting were made in the company.
The fashion industry also had its ups and downs especially for Hugo Boss that declared bankruptcy just a few years after it started. However, with a huge amount of leap of faith and risk its owner gave it another shot. At present, Hugo Boss is now an international brand known to provide high end fashion.
If you look into the health and diet field, many are familiar with Atkins Nutritionals. This once talk of the town diet program is now losing its faithful followers and had to file bankruptcy to save the company.
Lehman Brothers is the perfect example for an investment bank that went down the hill. In the history of investment, it is on the top list for losing huge figures. Finally, ending the list is the Reader’s Digest Association that was once the reading of everyone. With production issues, dwindling subscriptions, and competition on digital publishing, this once big company has ever since felt the effects of bankruptcy.
With this list of the huge businesses falling down once on their existence, how can a business actually save itself from bankruptcy? Chapter 7 bankruptcy attorney Matt Resnik believes that it is in the hands of a trusted legal partner. Quoting Simon Resnik Hayes LLP, “Chapter 7 personal bankruptcy is ideal for people without significant assets who have hit a bump in the road and want a fresh start. After a brief meeting with an attorney at our firm, we may be able to file your case and immediately stop creditor harassment and calls from collection agencies.”
By pursuing this type of personal bankruptcy, a businessman can save himself from the tragic end. Also, being in the hands of lawyers who understand your situation is the best grip you can get to get out of this massive and painful process. So every entrepreneur must evaluate his needs, know where to go to, and find out how to escape bankruptcy without losing all you’ve got.