Blog about Filing Bankruptcy in Washington DC and Maryland

Bankruptcy Success Stories: Gymboree and More

Gymboree Group Inc., the owner of children’s clothing chain Gymboree, recently announced it was emerging successfully from Chapter 11 bankruptcy. Earlier this year, Gymboree downsized the number of stores it has, shedding just under 350. It entered into bankruptcy with a plan, was approved by creditors and is now on track to begin repaying its debts. Now, the company must maintain market share and profitability in an increasingly competitive retail environment. Business Bankruptcy Success Stories Some companies, upon filing for bankruptcy, simply fade away into the annals of failed business history. But bankruptcy can be a very valuable tool to help a business owner preserve the company. Here are some examples of successful business bankruptcies and where they are now. American Airlines filed for bankruptcy, as many major airliners have at one point or another, in 2011. Three years later, American finished a merger with U.S. Airways Group to form…
Read More »

Will the Toys ‘R’ Us Bankruptcy Hurt Other Companies?

It was only a few weeks ago that Toys ‘R’ Us announced it would file for Chapter 11 bankruptcy, just shy of the holiday season. But Toys ‘R’ Us may not be the only company to suffer as it takes this step to restructure its debts. For toy manufacturers Hasbro and Mattel, Toys ‘R’ Us is the second biggest customer (behind Wal-Mart). Will the bankruptcy hurt those companies? When the first rumors started to swirl regarding a potential bankruptcy filing by the retail toy giant, shares for Mattel and Hasbro fell slightly. But when the rumors turned out to be true, Hasbro and Mattel bounced back. And going into the holiday season, it seems they will do just fine. The two companies have lowered their dependence on brick-and-mortar toy stores as online shopping becomes more and more popular. However, some questions remain. Mattel and Hasbro are Toys ‘R’ Us’ second…
Read More »

The Story Behind Toys ‘R’ Us and Its Bankruptcy

What happened to Toys ‘R’ Us? The retailer recently filed for bankruptcy protection. However, it intends to keep its stores open for the holiday season. The company hopes to use bankruptcy to restructure its debts, totaling $5 billion. Chairman and CEO Dave Brandon said that the financial flexibility afforded by bankruptcy will help the company strengthen its competitive position. Is it just Toys ‘R’ Us, though? Or is the potential failure of the big box toy giant a sign of things to come? Is the Retail Industry Dying? News stories were being written as early as February of this year pointing to Toys ‘R’ Us as the next potential victim of the fall of retail. That month, news came out that the company laid off between 10 and 15 percent of its corporate employees. Overall toy sales during the holiday season fell 2.5 percent in the U.S. and 4.9 percent…
Read More »