Famous Bankruptcy Cases

If you are old enough to have been watching TV in the early 70s, you probably remember watching The Partridge Family. For those of you who don’t know what I’m talking about, there’s always YouTube. The show featured actor and singer David Cassidy as teenage musician and lead family band member Keith Partridge. The series was quite popular during its four year run. It also found an audience in syndication. You might think that, given the show’s popularity when it was running and later in syndication, Mr. Cassidy would be financially sound. But sadly, this is not the case. After…Read   More

Feld Entertainment, who has owned Ringling Brothers circus for the last 50 years, is closing the famed circus after more than 100 years of existence. The company stated that declining ticket sales and the high cost of operating a circus of it size led to the decision. The company also saw a decrease in ticket sales after removing the elephants from the circus which was one of its most prominent and enjoyed routines. The animal rights group, PETA, picketed, protested, and even sued Ringling brothers which led to the circus ending the elephant part of the show. They will have…Read   More

It is not going to be a very happy new year for many Macy’s employees as the iconic brand announced last week that it will be closing 68 stores and cutting 10,000 or more jobs. In a recent press release, Macy’s stated that the closure of the 68 stores, out of their total of 730 stores, would allow them to reorganize their field structure that supports the remaining stores, reinforcing the strategy of fewer stress with better customer experience. All 68 stores should be closed by mid-2017. Going Digital Macy’s expects the closings and job cuts to generate annual expense…Read   More

Sears Holding Corporation is an American holding company headquartered in Hoffman Estates, Illinois. It is the owner of retail store brands Sears and Kmart. The Corporation was founded in 2005 when Sears and Kmart merged. Last week, Sears Holding Corp. announced it would close 150 stores that included 109 Kmart stores and 41 of its namesake Sears outlets. The newly announced 150 store closures bring the total recent total closure to over 400 with 78 stores closed in 2016 and more than 200 in 2015. Among these are the Kmart located at 300 Highway 78 East in Jasper, Alabama and…Read   More

Who Says You Can’t Go Back Home?

Posted on December 21st, 2016 by Don Lawson

Just in time for Christmas comes a truly heartwarming story. Actress and comedian, Amy Schumer recently posted that she bought back her father’s farm that he lost in Bankruptcy nearly 30 years ago.  Amy’s father, Gordon, was a very successful entrepreneur in Manhattan and as a result Amy spent much of her childhood very wealthy.  However, Gordon was diagnosed with multiple sclerosis when Amy was 12 years old.  As a result of his illness, Mr. Schumer could no longer work and had to declare bankruptcy.  “We lost the farm when we lost everything else. But today I got to buy…Read   More

Teresa Giudice is again in the news – this time for suing her bankruptcy attorney for malpractice.  In June, 2015, the Real Housewives star sued her former bankruptcy attorney alleging legal malpractice, breach of contract and breach of fiduciary duty. However, it is interesting to note that Giudice’s conviction was not limited to bankruptcy fraud – those actions she took or failed to take in the filing of her bankruptcy petition – but also pre-petition bank fraud resulting from failures to file income tax and falsified W2 forms on mortgage applications.  Yet she claims it is all the fault of…Read   More

Oh No . . . Not Again!

Posted on October 31st, 2016 by Ed Woods

American Apparel is reportedly about to seek relief in the bankruptcy court . . . again. Just one year ago, the company filed its first bankruptcy case. In late 2014, the company ousted its founder and then CEO, Mr. Dov Charney. Litigation ensued and the company’s sales continued to decline until, in October 2015, the company filed its first bankruptcy. American Apparel restructured and emerged from bankruptcy in February of this year. But apparently the restructuring plan hasn’t been enough. Fortune reports that sales have not grown fast enough so a second trip to the bankruptcy court seems likely. Filing…Read   More

Is Sears About To File Bankruptcy?

Posted on October 7th, 2016 by Ed Woods

Yes, I am referring to that Sears – the giant retailer. According to an article this week in TheStreet, Sears reportedly has “significant default risk” within the next one to two years. This would likely lead to a bankruptcy filing under either Chapter 7 liquidation or Chapter 11 reorganization. A Chapter 7 filing would mean that Sears would liquidate its assets in order to pay creditors while a Chapter 11 filing would be aimed at staying in business and trying to come out of bankruptcy in a much better financial condition. Declining Sales So, what’s going on? According to the…Read   More

National golf retailer Golfsmith filed for bankruptcy relief earlier this month in hopes of reorganizing its business model and managing its debts. The company also sought protection from its creditors in Canada and hopes to sell its Canadian chain, Golf Town, which is comprised of roughly 50 stores. Golfsmith was founded in 1967 and is currently based in Austin, Texas. The company plans on closing several of its locations in the United States which will definitely hurt some of the estimated 2,300 current employees. There are several reasons given for the need to restructure, but the primary reason is the…Read   More

ITT Technical Institute closed down in early September, leaving more than 35,000 students without a school, and leaving thousands of employees without a job.  Following the closure, the company filed for Chapter 7 bankruptcy in Indiana.  ITT Tech is the second major for-profit college that has filed for bankruptcy in the past two years.  Corinthian College filed in May 2015. ITT Tech Barred From Accepting Student’s Federal Aid ITT Tech blamed the closure on new requirements imposed by the U.S. Department of Education.  In August, the agency barred ITT Tech from enrolling new students using federal financial aid.  ITT Tech relied…Read   More