On September 15, 2008, Lehman Brothers filed the largest bankruptcy in history. Its pre-bankruptcy assets were $691,063,000,000 its a Major Bankruptcies in Recent Years.
Lehman Brothers Holdings Inc., the bankruptcy petitioner, was the United States’ fourth-largest investment bank. As a result of Lehman’s participation in the mortgage origination industry, it took a major hit during the mortgage crisis of 2008. Included here are the 20 largest bankruptcies in American history, as well as a few notable bankruptcy from 2017 and 2018.
Eleven days later, in the midst of the same financial crisis, savings and loan holding firm Washington Mutual filed for Major Bankruptcies in Recent Years.
The Major Bankruptcies in Recent Years of Washington Mutual, with assets totaling $327,913,000,000., ranked as the second biggest in history. At the time, it was the biggest savings and loan association in the United States.
On July 2, 2002, Worldcom Telecommunications filed for bankruptcy with assets of $103,914,000,000. This made it the third biggest bankruptcy in terms of asset value.
A $4 billion accounting scam led to the collapse of the once-largest worldwide Internet network. For Worldcom’s declining stock prices to be concealed, auditors found improper accounting practices & Major Bankruptcies in Recent Years.
Here are Examples of Major Bankruptcies in Recent Years;
In Claire’s — In an effort to lower its roughly $2.1 billion in debt, the company announced in March that it would be liquidating several of its outlets.
Retail giant Sears filed for Major Bankruptcies in Recent Years in October with 687 shops and around 68,000 workers. Eddie Lampert, chairman of Sears, was granted permission by a bankruptcy court to purchase the company in February 2019. Because to this agreement, 45,000 jobs will be saved and around 400 shops will remain operational.
Kmart – Kmart, like its parent firm Sears Holdings, has been hit hard by the bankruptcy of its largest shareholder. In the last several years, 70% of retail establishments have shut their doors for Major Bankruptcies in Recent Years.
David’s Bridal – In November, David’s Bridal filed for bankruptcy. Heavy debt, changing trends in the wedding business, and falling marriage rates were all problems. Lenders have acquired ownership after reducing the loan by $450,000,000.
After declaring bankruptcy in April, Nine West shut down its 70 remaining outlets. In June, the firm made a $340,000,000 sale of its shoe and accessory brands Nine West and Bandolino to Authentic Brands Group, the parent company of such well-known labels as Frye, Vince Camuto, and Juicy Couture in Major Bankruptcies in Recent Years.
1. The NEIMAN MARCUS GROUP, INC.
On May 7, the American luxury department store business that also owns New York landmark Bergdorf Goodman filed for Chapter 11 bankruptcy, making it the first major retailer to do Major Bankruptcies in Recent Years.
The epidemic undoubtedly had a role, but it wasn’t enough to destroy this shopping destination. Since 2005, when it experienced its first of two leveraged buyouts, Neiman Marcus has been unable to recover financially from its heavy debt load. The Dallas-based team, however, demonstrates that a bankruptcy filing might really be a blessing in disguise.
The company emerged from Chapter 11 in September after a debt restructuring plan wrote out more than $4 billion. The road to recovery, though, has only just started. As a result of the epidemic, several high-end companies have chosen to bypass established wholesale routes in favor of selling directly to consumers Major Bankruptcies in Recent Years.
2. J.C. PENNEY
By the start of the year 2020, the enormous retail company had over 840 sites throughout the United States, 90,000 workers, and a history in business dating back 118 years. After Neiman Marcus’s Chapter 11 bankruptcy filing on May 6, J.C. Penney did the same on May 15.
Both the luxury competitor and the bargain chain have announced that they have emerged from bankruptcy after acquisition by mall owners Simon and Brookfield. The company will have to lay off 20,000 employees and shut one-third of its outlets to stay afloat. More than half of J.C. Penney’s employees will remain their current positions & Major Bankruptcies in Recent Years.
Just how much mileage did you put on your car this year? It’s been difficult to keep track of all the airlines that fell down in 2020 due to the worldwide tourist slump. Maybe not how Avianca hoped to commemorate the start of its second century in operation & Major Bankruptcies in Recent Years.
A Colombian airline that is both the second-largest in Latin America and the second-oldest in the world (after the Dutch KLM) has filed for Chapter 11 in New York on May 10. Avianca, like many other legacy airlines, has been feeling the pressure from budget carriers for quite some time. It has decided to eliminate several routes and lay off as much as 40 percent of its workforce in order to remain solvent.
4. NORWEGIAN AIR
Even the budget airlines felt the effects. The pioneer of low-cost transatlantic flights, Norwegian Air, filed for Chapter 7 bankruptcy protection in December. After years of rapid development funded by debt, the corporation was unable to withstand unexpected setbacks & Major Bankruptcies in Recent Years. As a result of the pandemic, passenger numbers for the airline plummeted by 99 percent in the second quarter of 2020, rendering it impossible for the company to meet its financial obligations in full and on schedule.
Keep in mind that Norwegian filed for Examinership in the Irish courts in order to safeguard its aircraft assets. Filing for bankruptcy in the United States is a popular option for many multi-national corporations since doing so requires neither physical presence nor a domestic business presence. One benefit of Chapter 11 bankruptcy is that, unlike in most international insolvency systems, where a trustee is appointed, the company’s current management is allowed to keep running things while the case is pending.
Cell phones from Digicel are almost standard issue throughout the Caribbean. Nonetheless, for years, the business has struggled against falling sales and rising operational expenses & Major Bankruptcies in Recent Years. Why is that? Low-margin data consumption among customers has increased, but high-margin phone income has decreased. Digicel’s cable TV and internet divisions have likewise been unable to make up for losses in the phone market. Its “unsustainable quantities of financed indebtedness” was cited in the May New York bankruptcy filing by the Jamaica-based, Bermuda-incorporated, Irish-owned corporation.
You know how the tale ends: several oil and gas companies defaulted on their debt due to a multi-year decline in commodities prices that was exacerbated by the epidemic. London-based Valaris, the world’s biggest offshore and well drilling firm, filed for Chapter 11 Major Bankruptcies in Recent Years on August
7. MCDERMOTT INTERNATIONAL
Even the coronavirus pandemic couldn’t prevent oilfield services provider McDermott International from defaulting on its debts. McDermott filed Chapter 11 reorganization in January, becoming another another victim of poor pricing and record-breaking debt. It has subsequently emerged from the proceedings thanks to a restructuring plan that includes the sale of its subsidiary, Lummus Technologies. Oil prices are expected to rise again in 2021, giving employees at the Houston firm reason to be optimistic Major Bankruptcies in Recent Years.
8. THAI AIRWAYS
At one time, Thai Airways International was widely regarded as Asia’s premier airline, thanks in large part to its excellent customer care. Thai has posted net losses for seven of the previous ten years, making it impossible to invest in the essential modifications and upgrades, which may explain why consumers are no longer satisfied. As a result of the pandemic’s devastating impact of Major Bankruptcies in Recent Years, the corporation filed for bankruptcy in May, or “debt rehabilitation” as it is known in Thailand, citing a debt load of 300 billion baht ($10 billion at the time of the filing).
9. CHESAPEAKE ENERGY CORPORATION
Fracking, the process of removing oil and gas from rock formations by injecting high-powered water and chemicals, was developed by Oklahoma City-based Chesapeake Energy a decade ago. Under the weight of its debt, the company went Major Bankruptcies in Recent Years and was delisted from the New York Stock Exchange on June 30 of this year.
10. ASCENA RETAIL GROUP
A huge retail chain has the potential to accrue more debt than anything else. It’s, of course, a conglomerate that owns multiple different stores. This is the situation with Ascena, a retail conglomerate that included well-known brands including Ann Taylor, Loft, Lou & Grey, and Lane Bryant before filing for Major Bankruptcies in Recent Years in July.
Sycamore Partners, a private equity firm, agreed to buy and relaunch Ascena’s portfolio of brands in November. The deal included the private equity firm’s promise to keep open around 900 of the company’s 1,500 retail sites throughout the United States. There will be a loss of thousands of jobs, both immediately and indirectl.