Famous Bankruptcy Cases

The second bankruptcy in two years involving RadioShack has been filed by its parent company, General Wireless Operations. Approximately 1500 stores are at risk of being closed with the latest update stating 552 stores will be closed (two in Alabama are on the closure list and those locations are in Madison and Mobile). The fate of more than 1000 stores is still up in the air. One bright note is that 400 independently owned dealers will remain open. As an aside and being an avid cyclist, I remember RadioShack sponsoring the professional cycling team which featured Lance Armstrong when he…Read   More

Todd Chrisley, the star of Chrisley Knows Best filed  a chapter 7 bankruptcy in August 2012.  The Chapter 7 Trustee who administered Chrisley’s bankruptcy estate filed an adversary proceeding in February 2014 asserting Chrisley had not disclosed all of his assets and transferred assets to his wife prior to the filing of the bankruptcy. [i] The Trustee sought to avoid those transfers as a fraudulent transfer.  Subsequently, the Trustee and Chrisley entered a settlement agreement whereby Chrisley was to pay the bankruptcy estate $150,000.  This settlement was approved by the Bankruptcy Court in March 2015. Motion for Contempt In January…Read   More

The Miami Herald recently reported on an interesting story from the State of Nebraska. The story illustrates that even government entities such as counties and cities can find themselves in deep financial trouble. Indeed, Jefferson County, Alabama and Detroit, Michigan are recent examples of this phenomenon. It All Started with a Murder According to the Miami Herald article, Gage County, Nebraska is in deep financial trouble. The trouble dates back to 1985 when a 68 year old lady named Helen Wilson was brutally murdered. Ultimately, three men and three women were convicted of the horrific crime and sent to prison….Read   More

Family Christian Stores has announced that it will be closing all 240 stores.  This company has been in business for 85 years.  The company claims that the reasons for closing all stores are due to “changing consumer behavior and declining sales”.  Family Christian Stores is a non-profit and one of the largest local providers of Christian products.  The company has not announced when the stores will be closed. With the growing trend of digital products, the physical demand for books have rapidly declined.  Students in schools are even using iPads instead of physical books to cover various school subjects.  Personally,…Read   More

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