Bankruptcy is a very real possibility in today’s business world. You will find that it is not only small brands that sometimes struggle with their bottom line but larger ones as well. Some of the most well-known brands today have filed for bankruptcy. When these brands were launched again, each of them worked closely with a digital branding agencyÂ to fare better than ever.
1. General Motors
Â General Motors(GM) did a booming business up until the 2008 economic recession. The company marked its 100 year anniversary by accumulating a debt of over $30 billion. In June of 2009, GM was forced to file bankruptcy under Chapter 11. In 2010, the company made a public offering for the first time and by the end of the year was once again turning a profit. Between 2009 and 2010, corporate bankruptcy experts helped restructure the company. At the time, government funding also helped the company turn a profit again. By June of 2015 the company had a $1.1 billion net income.
2. Ally Bank
Â Ally Bank was forced to declare bankruptcy, thanks to providing car loans to General Motors customers. The U.S. Department of Treasury paid $17 million to get the bank out of debt. The bank was then able to capitalize on the market to the tune of $11 million in revenue. They went on to earn double the amount financial analysts had declared they would.
3. American Airlines
Along with several other major aircraft carriers, American Airlines (AA) also faced bankruptcy. The company started losing money in 2007 and in November of 2011, both the parent company of AA as well as AA themselves filed for bankruptcy. Three years later, they became part of the largest merging of airlines in the history of the industry. Their 2014 financial recovery allowed them to come back from bankruptcy.
Â The discovery of digital photography resulted in the financial downfall of Kodak that led to its bankruptcy filing. By 2000, digital photography was becoming the preference of most people. As a result, by 2012 Kodak was forced to start the year out by filing for Chapter 11. The company was then reorganized and made its financial comeback in September 2013. When the company unveiled its new structure, it was announced that they had become “a technology company for business imaging.” Profits have still been declining, but Kodak did manage to recover.
5. Ashley Stewart
Â Plus size clothing company Ashley Stewart filed for bankruptcy first in 2011 and then again in 2014. Many of the brand’s stores were closed and investors were shying away from the brand. A reinvention of the brand turned things around for the company. A private equity firm bought the company out a month after it was forced to file for bankruptcy. Under new leadership, the company was built up, with plans to expand the brand’s Youtube channel and launch a blog and mobile friendly website in 2015.
Â Sbarro Pizza restaurants can be found in malls and airports throughout the United States. With over 1,100 restaurants, the company still filed for bankruptcy in 2011 and 2014. Several private equity firms merged in order to rebrand Sbarro as more of a family style restaurant than a convenient fast food option.
Â These brands are all examples of companies that managed to overcome bankruptcy, more than once in some cases. Each of them recovered financially, though some recovered better than others did. All of the above mentioned brands are still in business.
Author bio-Â Sarah Williams is an astute business woman spearheading three companies in the tech, retail and finance sectors. The secret behind her success is that she is never daunted by challenges and never fails to prove her mettle. She is a self-made woman who is passionate about motivating and lending influential tips to anyone looking up to her. Her write-ups can guide you to a better future.