Business Bankruptcy Articles and Information
Valentine’s Day might look a little different next year. The plant that manufacturers Sweethearts candy closed suddenly last week. Round Hill Investments, LLC abruptly shut down the New England Confectionery Company, or Necco, plant in Revere, Massachusetts. Necco has been the oldest continuously operating candy company in the United States. In addition to the beloved Sweethearts candy, the company also makes Mary Jane and Squirrel Nut Zippers candy, among others. What Happened? Round Hill Investments, LLC is owned by billionaire C. Dean Metropolous. Round Hill bought Necco out of bankruptcy in May for $17.3 billion. At the time of closing…Read More
Pacific Gas & Electric (PG&E) has warned California lawmakers that it may need to file a bankruptcy if the company is found liable for the wildfires that ravaged parts of California in 2017. How PG&E Were Held Responsible On June 8, 2018, California’s fire management agency, Cal Fire, said that electric equipment owned by PG&E caused twelve wildfires around October 2017. These wildfires were responsible for 18 deaths, burned hundreds of square miles, and caused significant property damage. Cal Fire says that PG&E violated a California law that governs vegetation management in eight of the wildfires that were responsible for…Read More
While many traditional retailers are struggling in today’s economy, the PGA superstore is growing and planning to open additional stores in 2018. This is very unusual, as everyone has read about many retailers filing for bankruptcy over the last several years. There are most likely several reasons why many retailers have filed for bankruptcy protection with online retailers probably having the biggest impact in their declining revenues. Good News for PGA Superstore The PGA Superstore based out of Atlanta plans on opening new stores this year, and several of those locations having been a Toys R Us or a Babies…Read More
Political consulting firm Cambridge Analytica announced last week that it was planning to cease its operations and file for bankruptcy. The announcement follows growing concerns of its business practices and its work during the 2016 presidential campaign. The company offered tools and tests that could supposedly identify the personalities of American voters, and could also influence their behavior. These techniques were utilized for the Trump campaign as well as for other candidates in 2014 and 2016. Cambridge Analytica came under major scrutiny this year for its methods of profiling American voters and also because of allegations that it improperly gathered…Read More
Last month, I wrote about The Weinstein Co. seeking bankruptcy protection after revelations of serious sexual assault and misconduct on the part of board member, Harvey Weinstein. This misconduct occurred over decades, and remained a well-kept secret due to a document known as a Nondisclosure Agreement, or NDA. Victims of Harvey Weinstein were required to sign nondisclosure agreements in return for receiving monetary settlements arising from claims of sexual misconduct against Mr. Weinstein. Because the victims were required to stay silent after receiving settlements from the Weinstein Co., per the nondisclosure agreements, the actions of Harvey Weinstein were never brought…Read More
The Weinstein Co. bankruptcy has now endangered the continued existence of one of its marquis properties: Project Runway. According to reporting in Page Six, A&E Network cancelled its distribution deal with The Weinstein Co. for Project Runway based upon a breach of contract. The television network claims Harvey Weinstein “failed to operate a workplace within the bounds of the law, failed to notify A&E of potential legal claims, and failed to abide by A& E standards and practices.” Why Is the Loss of Project Runway an Issue? As one of the premiere series on cable television, A&E’s decision to cancel the next…Read More
For my generation, no middle school trip to the mall was complete without a visit to Claire’s to pick up some jewelry, gifts, or maybe even get your ears pierced. In fact, Claire’s says it has pierced more than 100 million ears around the world! Last week, the company became the last retailer to file for Chapter 11 bankruptcy. The Financial State of Claire’s Claire’s held $2.1 billion in debt at the close of 2017, and is seeking to reduce its debt by $1.9 billion through the bankruptcy. The company earned $29 million in profit and $1.3 billion in revenue…Read More
If you grew up in Chicago or in the Chicago Suburbs in the late 70s and early 80s, chances are good that you will recognize this iconic symbol: While those who came of age in the same era in other parts of the country may point to the movie Dazed and Confused as representative of what it was like to grow up during this time period, WLUP (“The Loop”) was that same type of thing for young people in Chicago. I don’t know anyone from my era in the Chicago area who did not have and constantly wear a black…Read More
Last month, we wrote about Nashville, Tennessee based Gibson Guitar’s financial troubles and the possibility of them filing for bankruptcy. Well, it appears that more troubles are brewing. Bloomberg reported that a group of the company’s largest bond holders are pushing for a change in the company’s leadership. A New Plan…with Some Backlash The bondholders, who are being advised by the investment bank PJT Partners Inc., are wanting to restructure the company; giving them a majority ownership in the company and removing Gibson’s long-time president and CEO Henry Juszkiewicz. According to unnamed sources, the bondholders do not believe that Gibson’s…Read More
The Weinstein Co. has announced it will seek bankruptcy protection after a proposed sale of the business to an investment company fell apart over the weekend. In the fall of 2017 the once lucrative film and television studio began a death spiral after allegations surfaced of serious sexual assault and misconduct on the part of board member, Harvey Weinstein. How Did This Occur? Leading to the #MeToo movement, Ronan Farrow’s expose’ in the New Yorker entitled “From Aggressive Overtures to Sexual Assault: Harvey Weinstein’s Accusers Tell Their Stories” outed Mr. Weinstein’s decades long sexual misconduct and led to the company…Read More
