Dominant Companies That Ended Up In Bankruptcy
Managing a company takes a lot of skill and knowledge. It is not just simple ABCs where you can bring a decision and just know that it is the right one. Managers require a lot of market education, economics, law, and they deal with a lot of information that they must process.
Many people tried and failed to run a company. It is interesting to know that a lot of us think that if a certain company is successful worldwide, there is no chance of failing. Well, we decided to give you a list of companies that will prove everybody wrong. The list contains companies that were extremely powerful at some point, but due to various reasons, like the world crisis in 2007, or just not being able to return money to lending companies, ended up in bankruptcy. Here are some of our top picks.
Enron was an energy, commodities, and services company that was based in Houston, Texas. It was one of the world’s biggest companies but after the big scandal that the company suffered, it filed for bankruptcy in 2001. Some of Enron’s highest executives were charged with fraud. The company’s downfall began when they started to hide the losses from the mark-to-market scheme, which was showing profits that were much higher than they were. Finally, at the end of 2001, Enron’s share plummeted from $90.7 to less than a dollar for a share and the company was forced to file for bankruptcy.
Blockbuster was the biggest provider for movies and video games. During the company’s peak, it had over 80,000 employees worldwide. Blockbuster had a big breakthrough in the 90s after buying the rival Erol’s, which had over 200 stores. But, as time went by, CDs and DVDs became obsolete and Blockbuster’s sales started to go down. After CDs were thrown out of use in 2015, it was only a matter of time before the company shut down. As of 2019, there is only one Blockbuster store left in the world.
Kodak is easily one of the world’s most famous companies for producing cameras. They provided the people with high-quality products for a long time, but unfortunately, failed to anticipate the new wave of smartphones and the quality that they were producing and they ended up in a big crisis. Their products were not selling and the company had no solution whatsoever. In the end, Kodak was faced with a $6.7 billion debt.
General Motors (GM) was the leading automaker in the world and one of the most powerful and most profitable companies globally. It manufactured vehicles in over 30 countries and some of its brands included Chevrolet, Buick, Cadillac, and GMC. During the 2007 world crisis, the poor economy in the USA and the world forced the company to file for Chapter 11 bankruptcy. This was a devastating blow not just for GM, but for Detroit and the USA. Detroit is also known as Motor City, and the city’s main income was from automotive companies like GM. After General Motors shut its doors down, thousands of people were left without a job and the economy recessed massively in the country.