These companies went the way of the dodo bird. For this list, we’ll be looking at the most prolific businesses and firms that have declared bankruptcy.
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00:00 The famous Sears catalog so many knew and loved is long gone, and soon its last few
00:05 stores may disappear as well.
00:08 Welcome to WatchMojo, and today we're counting down our picks for the top 20 companies that
00:12 went bankrupt.
00:13 The shutdown caught everyone here at Kennedy Airport by surprise.
00:16 It's been no secret that Pan Am has been in serious financial trouble for years.
00:20 For this list, we'll be looking at the most prolific businesses and firms that have declared
00:24 bankruptcy.
00:25 We'll be including companies that eventually emerged from bankruptcy, so long as they entered
00:29 the process at one time.
00:30 What do you make of these companies and their stories?
00:32 Let us know in the comments below!
00:35 Hey Mojoholics!
00:36 For a chance to win cash prizes, play our live daily trivia challenges every day at
00:41 3pm and 8pm Eastern only at WatchMojo.com/play!
00:45 #20.
00:48 The Weinstein Company
00:50 As the name suggests, famous film studio The Weinstein Company was founded by brothers Bob
00:54 and Harvey Weinstein.
00:55 While it was only created in 2005, the studio found immediate success and released back-to-back
01:01 best picture winners to King's Speech and The Artist.
01:04 But you know the name, and you know the story.
01:06 Co-founder Harvey Weinstein was accused of some high-profile crimes in October 2017 and
01:11 was immediately fired from the company.
01:13 It didn't take long for said company to completely implode.
01:16 They filed for Chapter 11 bankruptcy just five months later, and their assets were sold
01:20 to Lantern Entertainment, who in turn signed a distribution deal with Lionsgate.
01:25 The Weinstein Company filed for bankruptcy as part of an asset sale to an investment
01:30 firm, which is Dallas-based Lantern Capital.
01:32 #19.
01:33 Nortel
01:34 We guess no business lasts forever, even though it may seem like it at times.
01:38 Canadian telecommunications company Nortel was created all the way back in 1895 and once
01:44 held enormous power on the Toronto Stock Exchange.
01:47 "Nortel Networks is building a new high-performance internet.
01:51 And it can be whatever you want it to be.
01:54 So tell us, what do you want the internet to be?"
01:57 But the company faced numerous controversies throughout its lifetime, including unfair
02:00 executive pay and some major bookkeeping errors, resulting in charges from the U.S. Securities
02:05 and Exchange Commission.
02:07 They also suffered extensively from the financial crisis of 2008, resulting in a filing for
02:11 Chapter 11 bankruptcy in January 2009.
02:14 It became the largest bankruptcy case in Canadian history.
02:17 "In 2009, Nortel flamed out, declaring bankruptcy, sifting through the wreckage.
02:23 Prosecutors laid fraud charges against three former executives.
02:27 But today, a judge found them not guilty."
02:29 #18.
02:31 Borders Group
02:32 We hate to say it, but bookstores may be a relic of the past.
02:35 This is perhaps best exemplified by the collapse of Borders Group, which was known for its
02:39 chain of eponymous stores.
02:40 "The company became a pioneer of the big-box bookseller concept.
02:46 At its peak in 2003, Borders had more than 1,200 stores around the country, each with
02:52 thousands of new titles."
02:53 There were over 500 Borders locations throughout the United States, but none had been profitable
02:58 since the mid-2000s.
02:59 Unfortunately, every single one was closed in 2011 after the company filed for bankruptcy.
03:04 By September of that year, every Borders in the country had shuttered its doors and the
03:08 website had gone dark, ending a company that had been around since 1971.
03:13 "But today, its representatives were in court with a plan to liquidate its remaining
03:18 399 stores, beginning as early as tomorrow.
03:22 More than 10,000 employees will lose their jobs as a result."
03:26 The company's trademarks were subsequently purchased by prominent rival Barnes & Noble.
03:31 #17.
03:32 Circuit City
03:33 This popular electronics brand started life as the Wards Company in 1949 and revolutionized
03:38 the business of consumer electronics.
03:41 The name eventually changed to Circuit City, which became one of the most recognizable
03:44 brands in America.
03:45 "At Circuit City, we have all the hottest new TVs, from HDTV to plasma, LCD and more.
03:52 And with unbeatable prices guaranteed, you'll find the perfect one."
03:56 However, the company faced significant financial problems throughout the 2000s and eventually
04:00 filed for bankruptcy on November 10, 2008.
04:03 Despite a promise to the contrary, Circuit City began liquidation just a few months later,
04:07 and every store was closed by March 2009.
04:09 "It's just something that's very sobering and tells us all that we're not safe, any
04:16 of us, for having a job to retirement.
04:21 It's just really kind of a sad situation."
04:23 The brand name was bought by Systemax Inc. and later acquired by a man named Ronnie Schmoyle,
04:27 who relaunched Circuit City online.
04:30 #16.
04:31 DeLorean Motor Company
04:33 While the company itself is long gone, the DeLorean name may forever live in our collective
04:37 hearts.
04:38 It's amazing what a single movie can do to a brand's reputation.
04:41 The DMC DeLorean is featured prominently throughout the Back to the Future trilogy, giving it
04:45 perhaps an unfavorable and inaccurate legacy.
04:48 "Doc, are you telling me you built a time machine out of a DeLorean?"
04:55 "The way I see it, if you're going to build a time machine into a car, why not do it with
04:59 some style?"
05:00 By nearly all accounts, the DeLorean was an awful car.
05:03 It suffered from a number of notable performance issues, and the overall quality did not warrant
05:07 its premium price of $25,000, or about $80,000 in 2023 currency.
05:13 The DeLorean Motor Company didn't make it 10 years going bankrupt in 1982, and the DMC
05:18 was the only car it ever produced.
05:20 "John DeLorean had realized his sports car dream.
05:25 But there was just one problem.
05:31 It was terrible."
05:32 #15.
05:34 Tower Records
05:35 Many things are being phased out as we enter deeper and deeper into the digital age.
05:39 Unfortunately, the music industry has been hit very hard since the advent of the internet,
05:43 and many music stores have gone the way of the dinosaurs.
05:57 The first Tower Records opened in Sacramento, California in 1960, and eventually became
06:02 one of the country's flagship music retailers.
06:04 But things like managerial blunders and internet piracy contributed to the company twice filing
06:09 for bankruptcy, once in 2004 and again in 2006.
06:13 The assets were sold in an auction to Great American Group, and the last store was closed
06:16 in December 2006.
06:18 The brand has since been revitalized online, and there are plans of reopening some brick-and-mortar
06:22 stores.
06:23 "So much of what Tower was was the employees.
06:26 Starting with Russ, obviously, they were such community gathering places that online experience
06:33 is really not the same."
06:35 #14.
06:36 Sears Holdings
06:37 There's a certain nostalgic magic to large department stores like Sears.
06:41 "Once the nation's largest retailer, it was one-stop shopping for many households."
06:46 "Why do I shop at Sears?
06:47 It's easy for me.
06:48 I can pick up tennis balls, children's clothing, torque wrenches, and a dish all in the same
06:54 shop."
06:55 Unfortunately, the internet and online shopping effectively killed them forever.
06:58 Sears Holdings was the parent company of both Sears and Kmart.
07:02 Two big-box stores with few locations and many barren aisles.
07:06 Sears Holdings did what they could in the midst of an imminent collapse.
07:09 But said collapse was simply too great, and the company filed for bankruptcy in October
07:13 2018.
07:14 "Under billionaire CEO Edward Lampert, it struggled through years of losses and the closure
07:19 of hundreds of stores before today's bankruptcy filing with $5.6 billion of debt."
07:27 Over 140 stores were permanently shuttered, leaving behind both dusty debris and favorable
07:31 memories.
07:32 The retail assets were sold to ESL Investments, who in turn launched a private company called
07:37 TransformCo, which acquired Sears' hometown and outlet stores.
07:41 Unfortunately, this too went defunct in 2019.
07:44 13.
07:45 Bed, Bath & Beyond
07:47 The last word in this brand name took on increased symbolism in 2023 when it was announced that
07:52 they were entering bankruptcy.
07:53 "This is a company that's been struggling for a while.
07:55 As you've mentioned, they've been saying that, 'Look, if we can't raise the money
07:58 that we need last minute, we could ultimately file for bankruptcy,' which is what happened
08:02 ultimately yesterday."
08:03 What is "Beyond" for Bed, Bath & Beyond?
08:06 Probably nothing but nostalgia.
08:07 The first store was called Bed & Bath, and it opened in New Jersey in 1971.
08:11 Forty years later, the company had over a thousand stores in America and was the leading
08:15 name in home accessories.
08:16 But COVID hit the company hard, and it collapsed throughout the early 2020s.
08:20 "Bed, Bath & Beyond had really fallen behind the times.
08:22 They had not invested in their technology.
08:25 Their online presence was slow and clunky.
08:28 They just were not keeping pace with all the changes."
08:31 2023 opened badly, with shares plunging by a third and rumors of bankruptcy percolating
08:36 through the media.
08:37 The entire Canadian division was closed in February, and the company fulfilled the prophetic
08:41 rumors two months later by filing for Chapter 11.
08:45 12.
08:46 CIT Group
08:47 CIT Group, named after its early title of Commercial Investment Trust, is 550th on Fortune's
08:52 1,000 largest American companies list as of 2018.
08:56 However, the financial services giant suffered significant problems amidst the Great Recession
09:01 of the late 2000s and filed for bankruptcy protection in November of 2009.
09:05 By mid-2009, CIT had amassed roughly $65 billion in debt, and while the filing was expected
09:11 and prepared for, it was still one of the biggest bankruptcies in American history.
09:15 CIT emerged from bankruptcy after only 38 days, making it the only major financial sector
09:20 company at the time to do so.
09:23 11.
09:24 Pacific Gas & Electric Company
09:26 The Pacific Gas & Electric Company, also known as PG&E, is a utility company that provides,
09:31 you guessed it, gas and electricity to roughly 5 million people in Northern California.
09:36 California suffered a major drought in 2001, which severely limited the available amount
09:40 of hydroelectric power.
09:42 PG&E were subsequently forced into buying exorbitantly priced electricity from out of
09:46 state, which resulted in massive losses.
09:49 The utility company entered bankruptcy on April 6, 2001.
09:53 As a result, California lost about $45 billion and millions of people were forced to pay
09:58 higher than average electricity prices to make up for the debt.
10:02 10.
10:03 Marvel
10:04 We got the superheroes, now when do we get the movie about Marvel?
10:06 Because the story is a stunner.
10:09 Despite a strong start to the decade, Marvel began suffering financial problems in the
10:12 mid-1990s, which was due largely to the shrinking comic book market.
10:16 The company filed for bankruptcy on December 27, 1996.
10:19 However, it was in this state for less than two years.
10:22 In June of 1998, Marvel Entertainment Group merged with Toy Biz, the company that manufactured
10:27 Marvel's merchandise.
10:28 We found, despite months spent near bankruptcy, Marvel now seems to be bouncing back.
10:34 Marvel is going to try to take its comic books into the 21st century through a number of
10:39 different ways.
10:41 The merger created Marvel Enterprises, which was later renamed Marvel Entertainment, to
10:45 reflect its expanding presence in the film industry.
10:47 Well, we all know how that went.
10:49 After years of historic success, Marvel was purchased by Disney in 2009 for $4 billion.
10:56 9.
11:05 Toys R Us
11:06 Toys R Us was once one of the biggest toy stores in the world.
11:11 It was founded in 1948 and subsequently opened nearly 1,800 stores around the world, including
11:16 800 in the United States alone.
11:18 However, due to a large variety of factors - no, not just that kids would rather spend
11:22 their time on a smartphone - Toys R Us filed for Chapter 11 on September 18, 2017.
11:27 The company had amassed $5 billion in debt and hadn't seen profit for nearly five years.
11:32 On March 14, 2018, the company announced that it was closing every one of their UK and American
11:37 stores, totaling roughly 900 outlets.
11:40 8.
11:41 Kodak
11:42 Kodak was once THE name in photography and film.
11:45 The company was founded in 1888 and enjoyed immense prosperity throughout much of the
11:49 following century.
11:50 However, the company struggled upon the advent and rise of digital photography, and they
11:54 were slowed in transition to that quickly dominant trend.
11:57 They eventually filed for Chapter 11 bankruptcy in January 2012.
12:01 The company stopped making various products as a result of the bankruptcy and sold off
12:05 various patents to other companies, to the tune of $525 million.
12:09 But the company rose from the ashes in September 2013 and continues to operate to this day.
12:15 7.
12:16 Blockbuster
12:17 Who didn't see this coming?
12:18 Like Radio Shack and HMV, time wasn't kind to Blockbuster.
12:23 Blockbuster dominated the video rental market throughout the 90s and early 2000s, operating
12:27 over 9,000 stores and employing 84,000 people.
12:30 However, with the rise of Redbox, pirating, video on demand, and especially Netflix, Blockbuster
12:35 lost significant revenue and filed for bankruptcy in 2010.
12:39 Today, only a handful of Blockbuster stores remain.
12:42 Many people in the industry blamed Blockbuster for its own downfall, with some citing poor
12:46 management and senseless business tactics.
12:48 But hey, at least the closures gave us that hilarious last Blockbuster Twitter account.
12:53 6.
12:54 WorldCom
12:55 WorldCom was a telecommunications company who filed for Chapter 11 bankruptcy in July
13:00 2002.
13:01 At the time, this was the largest bankruptcy in American history, and with it came with
13:05 many changes to the company.
13:07 WorldCom paid $750 million to the U.S. Securities and Exchange Commission.
13:11 A new CEO was hired.
13:13 The company moved from Mississippi to Virginia, and it changed its name to MCI, Inc.
13:18 MCI emerged from bankruptcy in 2004, although many of its creditors were left unpaid.
13:23 Some of these creditors included laid-off employees who never received severance or
13:26 benefits.
13:27 WorldCom's co-founder and CEO Bernard Evers was later convicted of fraud and conspiracy
13:32 and sentenced to 25 years in prison.
13:35 5.
13:36 Pan Am
13:37 It didn't get much bigger than Pan Am.
13:39 Founded as Pan American Airways back in 1927, Pan Am became an American icon for its many
13:44 airline innovations, blue logo, and the white uniforms of its staff.
14:00 The company had a monopoly by the mid-20th century and even introduced the Boeing 707
14:05 in 1958.
14:06 It seemed like the party would never end, but the airline industry was deregulated in
14:10 1978, an event that increased competition and instigated the collapse of Pan Am.
14:15 It suffered throughout much of the 80s and desperately attempted to restructure, but
14:18 the end was nigh and the company declared bankruptcy in 1991.
14:33 The announcement was met with widespread shock and grief as it signified the end of an American
14:37 tradition.
14:38 4.
14:39 Enron
14:40 The Enron affair is one of the most well-known financial scandals in American history, and
14:44 the name Enron has since become synonymous with corporate fraud and corruption.
14:48 Enron was founded in 1985 and quickly became one of the most prosperous suppliers of electricity
14:53 and natural gas.
14:54 In 2000, Enron saw over $100 billion in revenue.
14:58 Or did they?
15:00 In 2001, Enron was revealed to perpetrating massive amounts of accounting fraud.
15:04 The company quickly entered bankruptcy, some people went to jail, employees lost billions
15:08 in pensions, and the ordeal caused massive shockwaves throughout the business world.
15:13 3.
15:14 General Motors
15:15 General Motors is one of the most iconic car companies of all time.
15:19 In 2016, over 10 million GM vehicles were sold around the globe.
15:23 However, like most companies at the time, including rival car manufacturer Chrysler,
15:27 GM suffered heavily in the Great Recession and went bankrupt in June 2009.
15:31 They emerged from this financial purgatory roughly one month later with significant help
15:35 from the government through its troubled asset relief program.
15:39 As a result of the bankruptcy, GM discontinued various brands, including Saturn and Pontiac
15:43 brands.
15:44 2.
15:45 Washington Mutual
15:46 Washington Mutual was once a holding company who owned the largest thrift institution in
15:51 the United States.
15:52 By 2007, Washington Mutual employed over 40,000 people, had over $188 billion in deposits,
15:59 and had assets valued at over $327 billion.
16:03 And like other companies, including CNO Financial and MF Global, it all went kaput.
16:08 In September 2008, the FDIC took control of Washington Mutual after $16 billion was withdrawn
16:14 from the bank.
16:15 The very next day, Washington Mutual Inc. filed for bankruptcy.
16:18 By 2009, Whamu Branches became Chase Branches, bondholders lost $30 billion, and Washington
16:24 Mutual had a reputation as the largest failed bank in American history.
16:44 1.
16:45 Lehman Brothers
16:46 The fall of Lehman Brothers is arguably the most notable and extreme example of bankruptcy
16:50 in the history of the United States.
16:52 Lehman Brothers was founded in 1850, and by 2008, it was America's fourth-largest investment
16:58 bank.
16:59 However, Lehman Brothers became involved in the subprime mortgage crisis of the late 2000s,
17:03 resulting in a host of financial liabilities that led to its declaration of bankruptcy
17:07 in September 2008.
17:09 At the time, the bank owned $639 billion in assets but were over $750 billion in debt.
17:16 The bankruptcy was the largest in American history, and it significantly weakened the
17:19 already fragile financial markets at a vulnerable time.
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