Nationwide fashion retailer Barneys New York has struck a deal to keep the company from filing for bankruptcy. The retailer devised a reorganization plan that includes forfeiting 70 percent of its ownership to the hedge fund Perry Capital.
Debt from a r 2007 buyout by Istithmar World is blamed for the retailer's financial woes. Istithmar, an investment entity of Dubai World, paid more than $940 million for the retailer and sank millions of dollars into the company over the last five years.
The popularity of an unusual pregnancy brought fame and fortune to Nadya Suleman, the woman known as "Octomom" for giving birth to octuplets. To Suleman's disappointment, even rare news becomes old news. Notoriety and the financial perks that come with it can fade.
Suleman has run up far more debt than she has the ability to pay, so the single mom has filed for Chapter 7 bankruptcy. According to the bankruptcy petition, she owes almost $1 million to a number of creditors, including the school some of her 14 children attend, her father and a landlord. Suleman claims estimated assets of $50,000 and liabilities totaling up to 20 times that amount.
Betsey Johnson may remain a recognizable, high-end fashion name, but it is not likely that any of the designer's retail outlets will exist far beyond New York City. The fashion designer's company filed for Chapter 11 bankruptcy recently, which observers say will translate to the closing of nearly 60 chain stores throughout the country.
A business reorganization was attempted and failed in the years leading up to the bankruptcy filing. Johnson launched the brand in the late 70s, and the company rose to prominence by catering to a young, neon-color loving, moneyed fashion audience.
Having a tremendous income from a career at an early age seems like a dream to people who wait years to achieve financial success. Professional athletes are often drafted before the completion of a full education or acquisition of any real financial experience. Some end up in dire financial straits because of an unexpected end to a career.
A long line of athletes, once wealthy and at the top of their games, have filed bankruptcy petitions for debt relief. According to Sports Illustrated, nearly 80 percent of National Football League players take a serious financial hit within two years of leaving the game. Five years after retirement, 60 percent of retired pros are penniless.
The largest ice maker and distributor in the country filed for Chapter 11 bankruptcy protection because the company is swimming in debt. Reddy Ice also claimed in its bankruptcy petition that the stagnant economy and fierce competition caused it to seek debt relief.
Reddy Ice is not waiting for U.S. Bankruptcy Court to put the freeze on one of its competitors. It wants to buy Artic Glacier, another ice manufacturer that filed for Chapter 11 last winter. Despite the company's precarious financial position, one creditor has "indicated interest" in backing the purchase of the second ice maker. The willing hedge fund is listed as one of Reddy Ice's primary creditors in the bankruptcy filing.
The decision to ask a U.S. Bankruptcy Court for debt relief is one few people make without exhausting every other possible way to stay solvent. Millions of consumers ended up filing for bankruptcy in the years since the recession began.
What does it take to enter personal bankruptcy? The federal laws that apply to consumer bankruptcies include a checklist that filers must complete before a bankruptcy petition is accepted.
Five years ago Goldman Sachs and Canada's biggest private equity company, Onex, bonded to buy Raytheon's private jet-manufacturing division for more than $3 billion. The ill-fated purchase of the division, renamed Hawker Beechcraft, was meant to take advantage of a rapidly-rising trend in private jet ownership.
Since its transfer of ownership, the company fell on hard times. Hawker Beechcraft is considering filing for Chapter 11 bankruptcy. A new company CEO, whose strengths lie in business reorganization, is promising the company will soar again.
Analysts from three universities discovered that 2005 changes to U.S. bankruptcy laws abruptly and dramatically altered the number of personal bankruptcies filed. The new laws made it harder and more expensive for consumers filing for bankruptcy.
And researchers have slowly connected the dots between the spike in bankruptcy filing costs and the filing of federal tax returns. Researchers from Washington University, the University of Chicago and Columbia University noticed a blip in the personal bankruptcy filing radar. Economists found a spike in bankruptcy filings at tax time, indicating that some Americans were waiting for and using tax refunds to afford the fees of bankruptcy.
Hints that Southern-based carrier Direct Air would file for Chapter 11 bankruptcy began when the charter airline suddenly left its passengers in a lurch. The airline recently canceled flights without warning. Four days later, company officials filed a petition in U.S. Bankruptcy Court for protection from its creditors.
The decision to file a petition for bankruptcy comes just six months after an investor group took majority control of the company. The new owners attempted to shore up Direct Air's poor financial situation with a jolt of fresh operating capital.
Continue reading Direct Air ends flights, fires managers, files bankruptcy
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Great Atlantic & Pacific Tea Company, the more than 150-year-old company better known as A&P, will emerge from Chapter 11 after more than a year under the protection of a U.S. Bankruptcy Court. The supermarket chain convinced a judge that a $490 million deal with Yucaipa Companies saved it from having to liquidate assets. The once-extensive grocery store group began as a single store in New York before the American Civil War.
A&P's unsecured creditors objected to the bankruptcy court's approval of the re-emergence proposal. The exit plan was modified in the last few weeks to eliminate $40 million in cash that was expected to pay anxious, disappointed creditors. Any future debt recovery hopes are resting on whether A&P is sold in the next few years for an attractive price. A&P will use a $645 million loan to help restart its business engines.
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