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 American Airlines Group, the world’s largest airline. It has since entered the S&P 500.
- Ashley Stewart, the plus-sized women’s clothing company, came very close to losing it all. In 2014, the company entered its second bankruptcy. Its stores failed; investors became hesitant to pursue any business with the company. But thanks to new vision from the CEO James Rhee, a buyout by Clearlake Capital and a new commitment to e-commerce and social media, the company enjoyed a remarkable turnaround.
- General Motors, one of America’s oldest and most respected automobile companies, struggled to survive the 2008 recession. With more than $30 billion in debt, GM entered bankruptcy in 2009. Through government funding and a massive restructuring plan, the company was able to become profitable just over one year later.
Even if your business is not a widely known name like the ones above, bankruptcy could be a valuable tool to help you dig yourself out of your financial distress. The first step in any successful business bankruptcy? Discussing your case with an attorney.