Getting deep into company debt is a terrifying and challenging experience. Profits that are falling, declining sales, and the failure to make debt payments are all signs of impending bankruptcy -a business's darkest nightmare. However, declaring bankruptcy does not always signify the end of a company's existence. In fact, in some circumstances, it may even symbolize the chance to begin over. Despite suffering severe financial upheavals, these five bankrupt companies that came back are still in business today.
Apple
In this technological era, it's difficult to envision a world without Apple. Still, Steve Jobs' computer powerhouse was on life support when he rejoined the business in June 1997 after a 12-year absence. It's hard even to think that one of the world's most valuable corporations in terms of market value was once in a horrible financial situation.
In 1997, Apple had lost more than $1 billion on a diverse range of devices, including flops like the Newton MessagePad, a portable gadget akin to a Palm Pilot. Apple's comeback began with a $150 million investment from Microsoft as part of a more significant peace treaty that assisted Microsoft in defending itself against antitrust claims by keeping its greatest rival alive. As a result, Apple is now a $300 billion firm with a global brand connected with appealing product design.
Delta
Delta was among the major airlines that battled to cope with declining customer demand, increased fuel costs, and the emergence of budget competitors offering cheaper rates in the years that followed the September 11, 2001, terrorist attacks. Then, in 2005, the firm filed for bankruptcy. When Delta recovered from bankruptcy in 2007, it took several astute efforts to add new routes, lower oil prices, and strengthen its customer satisfaction.
It started by concentrating on its employees. Delta invested in education and established a workforce profit-sharing scheme, which now gives out incentives equal to 14 percent of yearly salary —more than $1 billion last year. Delta now earns more than $5 billion in pre-tax profits every year, but there may be some turmoil in the future. If the corporation wants to keep increasing, it will have to deal with rising labor costs and lower business charges due to greater competition.
Marvel
Near-death encounters are common for Marvel characters, so it's maybe not surprising that the famous cultural iconic company returned from its mid-90s bankruptcy more powerful than ever.
Marvel filed for bankruptcy in late 1996, when the speculative collectibles market in its primary comics industry and the card game sector, which it had grown into with the purchases of Fleer and Skybox, crashed. After months of legal fights, the firm emerged from bankruptcy in July 1997 and soon regained steady footing with Marvel Studios, a pre-production unit it had established just before bankruptcy.
Kodak
Kodak Company was the titan photography industry for almost a century. However, Kodak succumbed to technological changes and advancements like many older enterprises. As digital photography became more popular in the 1990s and early 2000s, the company's film revenue decreased.
Kodak failed to keep up with the digital revolution, eventually filing into Chapter 11 bankruptcy in January 2012. In September 2013, a revamped Kodak arose after two years of organizational transformation, portraying itself as a "technology firm centered on imaging for the industry."
General Motors
A series of significant firms and financial institutions declared bankruptcy during the 2008 economic downturn. General Motors (GM), one of the most prominent firms in American history, was among them. The once-dominant automaker, founded in 1908, finished its 100th anniversary year with a burden of more than $30 billion.
It declared Chapter 11 bankruptcy in June 2009, and with government assistance and a dramatic turnaround plan devised by corporate bankruptcy specialist Jay Alix of AlixPartners, GM went public in 2010.
At the peak of the crisis, the United States proceeded on one of the most remarkable private-sector interventions in the country's history, putting roughly $50 billion into General Motors in exchange for a 60% ownership in the bankrupt carmaker.
By the middle of that year, the firm was prosperous again, and it has only continued to prosper, with a net income of $10 billion reported in a July 2021 news release.
Going bankrupt does not always mean the end of a business. With the appropriate restructuring approach, businesses can get back on the road and return from bankruptcy bigger than ever. These five bankrupt companies that came back worked their way out of problems and back into the show after declaring bankruptcy.
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