You’ve seen the commercials and the Logo’s, you probably even shopped at some of these places or used their products, but poorly made choices led each of these companies down the path to that chapter in the book they never thought they would find themselves in, Chapter 11. Although some managed to figure out their errors and fix the issues that plagued them and recover, others found that adjusting to modern times and the hole’s they had dug themselves into wasn’t so easy to get out of and had no choice but to close their doors forever. Here are some of those companies that were a surprise to all of us.
Toys “R” Us
Toys “R” Us was one of the most recent bankruptcies that shook the United States. In 2017, the company filed for Chapter 11 bankruptcy, stating it hadn’t made an annual profit since 2013. By 2018, all of its locations shut down. That, being said, some investors are taking a hard look at the toy store to see if it can make a comeback.
Enron had a spectacular rise and fall. It had approximately 29,000 employees and claimed $101 in revenue before an accounting fraud came to light in 2000. By 2001, Enron filed for bankruptcy. Corporate officers used financial deception to hide the fact the company had been losing money. By 2006, the company had no assets, and it settled with all institutions by 2008.
General Motors was one of the auto manufacturers that filed for bankruptcy during the Great Recession. Through the Troubled Asset Relief Program, the United States Treasury invested $49.5 billion into the company and recovered $39 billion when it sold its shares in 2013. The bailout saved 1.2 million jobs. By 2010, GM began reorganization and would return to profitability later that year.