Top 10 Companies That Fell in 2010
A&P is a well known grocery chain store with about 400 East Coast outlets in the United States. Although the company struggles throughout the recession, it took on a lot of debt when it acquired a competitor, Pathmark, in 2007. The financial strains eventually forced A&P to declare bankruptcy in December 2010. The company said that it will continue its operations while it restructures, and also mentioned it may consider a merger with another retailer.
Newspapers used to be a profitable venture, until the Internet came along offering a number of sources for free news. Affiliated Media, which publishes the San Jose Mercury News, Denver Post and 50 other newspapers, declared bankruptcy in January 2010. Affiliated Media followed at least a dozen of other newspaper publishers into Chapter 11.
BlockBuster, the famous movie-rental chain, unfortunately failed to keep track with growth on the Internet. While the company doubled down on retail stores and penalized clients with late return fees, other services such as Netflix made millions by offering their clients streaming video on the Internet. The company was forced into declaring bankruptcy in September 2010.
Hummer was one of the most popular vehicles in the early 2000’s, generating millions from its loyal customers. Although the recession had great impact on the company, some indications showed it may survive, but in 2009 its parent firm, General Motors, were forced into bankruptcy. For a while interest was shown by a Chinese firm to buy out Hummer. When the deal fell through, Hummer was laid to rest.
MGM is known for its classic movies, which include the Wizard of Oz, Dr. Zhivago and Rocky. In 2005 a group of private investors bought the firm, which lead to a piling of debt. In November 2010 the company was forced into bankruptcy. The company hopes to be back on their feet early 2011 with lowered debt and new projects such as two new Hobbit films and the latest James Bond edition.
The Washington Post, which had long owned NewsWeek, admitted to losing millions on it in recent years. In August 2010, NewsWeek was sold for $1 to billionaire, Sidney Harman. At the time of the sale the magazine had millions in debt. Later the magazine merged with the Daily Beast.
Urban Brands, the parent firm of the Ashley Stewart brand, which caters for young and middle-aged plus-size women, started its financial struggle in 2007. The company was forced into bankruptcy in September 2010. All its stores are still operating as normal, while the company attempts to fix its finances.
Mesa Air operated regional express flights for United, US Airways and Delta. The company was forced into bankruptcy in January. Currently the airliner slashed its fleet from about 180 aircraft to less than 80. It is expected that US Airways may attempt to rescue the company by becoming a part owner.
Well known clothing designer, Loehmann’s experienced financial difficulties in recent years. Although retail sales began a rapid recovery in 2010, it was too late for the company, who filed for bankruptcy in November. It was reported that a Dubai-based investing firm bought Loehmann’s in 2006, which ultimately lead to the company taking on more debt.
Innkeepers USA, a commercial property company, which owns about 70 hotels, and operated under brands such as Residence Inn, Hampton Inn, Summerfield Suites, Hilton and Hyatt, also filed for bankruptcy this year. It has been said that a private-equity firm purchased the company in 2007 and took on a lot of debt to finance the purchase. DownloadFreePdf Books