BUSINESS

5 companies that survived biggest bankruptcies

October 07, 2014

There are a few global companies that went bust but emerged from the scratch to run successful businesses.

Image: A man rides his bike past graffiti that reads 'Bankruptcy'. Photograph: Joshua Lott/Reuters

Biggest of companies going bankrupt is a known fact. Some of the large ones that met this fate recently include Lehman Brothers and General Motors. In India, Kingfisher Airlines (KFA) went bankrupt in 2012 due heavy borrowing. Ambassador car manufacturer Hindustan Motors' fate hangs in the balance.

There are, however, companies that have survived biggest bankruptcies and turned around. Here are five of them.


Image: Pedestrians walk past an Eddie Bauer store along Michigan Avenue. Photograph: Scott Olson/Getty Images

Eddie Bauer

No of bankruptcies: 2

Industry: Retail/clothing

Location: Washington, US

Eddie Bauer went bust in 2003 due to a huge debt pile on its books and had to file for bankruptcy.

In 2009, it again became bankrupt due to stiff competition.

In the same year, San Francisco-based PE firm Golden Gate Capital won a bankruptcy-court auction for $286 million.

Today, the retailer operates over 300 stores across cities. 


Image: People browse for gifts near a Schwinn boys bicycle for sale. Photograph: Mario Tama/Getty Images

Schwinn Bicycle Company

No of bankruptcies: 2

Industry: Sports

Location: Chicago, US

After going bankrupt, the sport bicycle maker was bought out by Zell/Chilmark Fund in 1992 and once again in 2001 it was acquired by the Pacific Cycle.

Over the past 13 years, the company has survived competition in a crowded industry with competent players. 


Image: Bini Vedral (R) rings up a Lila Prskalo's purchase of Hostess snacks. Photograph: Scott Olson/Getty Images

Hostess Brand

No of bankruptcies: 2

Industry: Food

Location: Kansas city, US

The Hostess brand which sells popular snacks like Twinkies and Snow Balls went kaput in 2004 and again in 2012.

Both the times, it came back to life and managed to grow its sales exponentially. 


Image: Continental Airlines agents help passengers with ticketing. Photograph: David McNew/Getty Images

Continental Airlines and United Airlines

No of bankruptcies: 3

Industry: Aviation

Location: Chicago, US

Aviation being a capital intensive sector, Continental Airlines got stuck over payment-related issues with the labour unions way back in 1983. The airline had to suspend operations due to lack of funds.

Again in 1990, the airlines could not put up with rising fuel costs and payment issues with its staff.

Due to the bankruptcy protection law, Continental Airlines managed to operate flights for few years, and in 2002 when its peer United Airlines also filed for bankruptcy, there were talks that both airlines would merge some day.

Eventually, in 2010 under they did. The airline is now called United Continental Holdings and serves over 350 destinations. 


Image: The Wynn Las Vegas resort is seen across the street from the $3 million sales plaza for the Trump International Hotel & Tower. Photograph: Ethan Miller/Getty Images

Trump Entertainment Resorts

No of bankruptcies: 4

Industry: Entertainment

Location: Atlantic City, US

Between 1991 and 2009, the Donald Trump led Trump Entertainment Resorts went bankrupt three times due to massive debt. However, Trump has a turnaround plan to resurrect business. The company has again filed for bankruptcy in 2014 and grappling to make a come back. Donald Trump, however, no longer runs or control the company.

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