Millions of people file for bankruptcy every year. In this process many people probably think it is the “end of the world”. In fact, it is not. Over the past few months this blog has covered famous people from athletes, to entrepreneurs, to politicians and actors who have filed for bankruptcy and come back from it, sometimes even stronger than before. Let’s look at some well known companies that have done the same thing.
Delta Airlines –
Once upon a time Delta Airlines was among the best and most profitable airlines in America but the rising fuel prices and stiff competition from low cost airlines proved fatal to the airlines. This clubbed with the non availability of concessions and higher labor costs led to the company filing for bankruptcy in 2005. But, this scene was soon swapped and in 2007 Delta Airlines again made a comeback.
General Motors –
General Motors based in Detroit, was one of the biggest car manufacturing company’s of the world. With operations in more than 157 countries, and more than 209,000 employees, the company eventually experienced a drastic decline in car sales, and was lead to file bankruptcy in 2009. After receiving good government financial aid, the company came back on track with the horror of bankruptcy behind it.
APPLE – Apple, of course, is the most valuable company in history, with a market capitalization of more than $630 billion. The brainchild of Steve Jobs fell on hard times in 1997, when he returned to the company to save it. Jobs, of course, turned the company around with a string of iconic products from the iPod to the iPhone and the iPad. While it never filed for bankruptcy, it did come back from the brink of bankruptcy raising its stock in 2011 from from $397 a share to about $670.
IBM – In 1993, the iconic, pioneering computer company seemed headed for the history books, a casualty of competitors like Microsoft, Dell and others who changed the industry. Under the guidance of Louis Gerstner, the new chairman and CEO, IBM was set on a course to cut costs and change the culture of the company, fostering a team approach. Under Gerstner, the company was again profitable by 1995.