Top 20 Companies That Went BANKRUPT

As the name suggests, famous film studio The Weinstein Company was founded by brothers Bob and Harvey Weinstein. While it was only created in 2005, the studio found immediate success and released back-to-back Best Picture winners “The King's Speech” and “The Artist.” But you know the name, and you know the story. Co-founder Harvey Weinstein was accused of some high-profile crimes in October 2017 and was immediately fired from the company. It didn’t take long for said company to completely implode. They filed for Chapter 11 bankruptcy just five months later and their assets were sold to Lantern Entertainment, who in turn signed a distribution deal with Lionsgate.

We guess no business lasts forever, even though it may seem like it at times. Canadian telecommunications company Nortel was created all the way back in 1895 and once held enormous power on the Toronto Stock Exchange. But the company faced numerous controversies throughout its lifetime, including unfair executive pay and some major bookkeeping errors, resulting in charges from the U.S. Securities and Exchange Commission. They also suffered extensively from the financial crisis of 2008, resulting in a filing for Chapter 11 bankruptcy in January 2009. It became the largest bankruptcy case in Canadian history.

We hate to say it, but bookstores may be a relic of the past. This is perhaps best exemplified by the collapse of Borders Group, which was known for its chain of eponymous stores. There were over 500 Borders locations throughout the United States, but none had been profitable since the mid-2000s. Unfortunately, every single one was closed in 2011 after the company filed for bankruptcy. By September of that year, every Borders in the country had shuttered its doors and the website had gone dark, ending a company that had been around since 1971. The company’s trademarks were subsequently purchased by prominent rival Barnes & Noble.

This popular electronics brand started life as the Wards Company in 1949 and revolutionized the business of consumer electronics. The name eventually changed to Circuit City, which became one of the most recognizable brands in America. However, the company faced significant financial problems throughout the 2000s and eventually filed for bankruptcy on November 10, 2008. Despite a promise to the contrary, Circuit City began liquidation just a few months later, and every store was closed by March 2009. The brand name was bought by Systemax, Inc. and later acquired by a man named Ronny Shmoel, who relaunched Circuit City online.

While the company itself is long gone, the DeLorean name may forever live in our collective hearts. It’s amazing what a single movie can do to a brand’s reputation. The DMC DeLorean is featured prominently throughout the “Back to the Future” trilogy, giving it perhaps an unfavorable and inaccurate legacy. By nearly all accounts, the DeLorean was an awful car. It suffered from a number of notable performance issues, and the overall quality did not warrant its premium price of $25,000 - or about $80,000 in 2023 currency. The DeLorean Motor Company didn’t make it ten years, going bankrupt in 1982, and the DMC was the only car it ever produced.

Many things are being phased out as we enter deeper and deeper into the digital age. Unfortunately, the music industry has been hit very hard since the advent of the internet and many music stores have gone the way of the dinosaurs. The first Tower Records opened in Sacramento, California in 1960 and eventually became one of the country’s flagship music retailers. But things like managerial blunders and internet piracy contributed to the company twice filing for bankruptcy - once in 2004 and again in 2006. The assets were sold in an auction to Great American Group and the last store was closed in December 2006. The brand has since been revitalized online, and there are plans of reopening some brick-and-mortar stores.

There’s a certain nostalgic magic to large department stores like Sears. Unfortunately, the internet and online shopping effectively killed them forever. Sears Holdings was the parent company of both Sears and Kmart - two big box stores with few locations and many barren aisles. Sears Holdings did what they could in the midst of an imminent collapse, but said collapse was simply too great and the company filed for bankruptcy in October 2018. Over 140 stores were permanently shuttered, leaving behind both dusty debris and favorable memories. The retail assets were sold to ESL Investments, who in turn launched a private company called Transformco which acquired Sears Hometown and Outlet Stores. Unfortunately, this too went defunct in 2019.

The last word in this brand name took on increased symbolism in 2023 when it was announced that they were entering bankruptcy. What is “beyond” for Bed Bath & Beyond? Probably nothing but nostalgia. The first store was called Bed 'n Bath, and it opened in New Jersey in 1971. Forty years later, the company had over 1,000 stores in America and was the leading name in home accessories. But COVID hit the company hard and it collapsed throughout the early 2020s. 2023 opened badly, with shares plunging by a third and rumors of bankruptcy percolating through the media. The entire Canadian division was closed in February, and the company fulfilled the prophetic rumors two months later by filing for Chapter 11.

CIT Group, named after its early title of Commercial Investment Trust, is 550th on Fortune’s 1000 largest American companies list, as of 2018. However, the financial services giant suffered significant problems amidst the great recession of the late 2000s and filed for bankruptcy protection in November of 2009. By mid-2009, CIT had amassed roughly $65 billion in debt, and while the filing was expected and prepared for, it was still one of the biggest bankruptcies in American history. CIT emerged from bankruptcy after only 38 days, making it the only major financial sector company at the time to do so.

The Pacific Gas and Electric Company, known primarily as PG&E, is a utility company that provides, you guessed it, gas and electricity to roughly five million people in northern California. California suffered a major drought in 2001, which severely limited the available amount of hydroelectric power. PG&E were subsequently forced into buying exorbitantly priced electricity from out-of-state, which resulted in massive losses. The utility company entered bankruptcy on April 6, 2001. As a result, California lost about $45 billion, and millions of people were forced to pay higher-than-average electricity prices to make up for the debt.

We got the superheroes. Now when do we get the movie about Marvel, because the story is a stunner? Despite a strong start to the decade, Marvel began suffering financial problems in the mid-1990s, which was due largely to the shrinking comic book market. The company filed for bankruptcy on December 27, 1996. However, it was in this state for less than two years. In June of 1998, Marvel Entertainment Group merged with ToyBiz, the company that manufactured Marvel’s merchandise. The merger created Marvel Enterprises, which was later renamed Marvel Entertainment to reflect its expanding presence in the film industry. Well, we all know how that went! After years of historic success, Marvel was purchased by Disney in 2009 for $4 billion.

Toys “R” Us was once one of the biggest toy stores in the world. It was founded in 1948, and subsequently opened nearly 1,800 stores around the world, including 800 in the United States alone. However, due to a large variety of factors (no, not just that kids would rather spend their time with a smartphone), Toys “R” Us filed for Chapter 11 on September 18, 2017. The company had amassed $5 billion in debt and hadn’t seen profit for nearly five years. On March 14, 2018, the company announced that it was closing every one of their UK and American stores, totaling roughly 900 outlets.

Kodak was once THE name in photography and film. The company was founded in 1888, and enjoyed immense prosperity throughout much of the following century. However, the company struggled upon the advent and rise of digital photography, and they were slow to transition to that quickly-dominant trend. They eventually filed for Chapter 11 bankruptcy in January 2012. The company stopped making various products as a result of the bankruptcy and sold off various patents to other companies, to the tune of $525 million. But the company rose from the ashes in September 2013 and continues to operate to this day.

Who didn’t see this coming? Like RadioShack and HMV, time wasn’t kind to Blockbuster. Blockbuster dominated the video rental market throughout the ‘90s and early 2000s, operating over 9,000 stores and employing 84,000 people. However, with the rise of Redbox, pirating, video on demand (and especially Netflix), Blockbuster lost significant revenue and filed for bankruptcy in 2010. Today, only a handful of Blockbuster stores remain. Many people in the industry blamed Blockbuster for its own downfall, with some citing poor management and senseless business tactics. But hey, at least the closures gave us that hilarious “Last Blockbuster” Twitter account.

WorldCom was a telecommunications company who filed for Chapter 11 bankruptcy in July 2002. At the time, this was the largest bankruptcy in American history, and with it came with many changes to the company. WorldCom paid $750 million to the U.S. Securities and Exchange Commission; a new CEO was hired; the company moved from Mississippi to Virginia; and it changed its name to MCI Inc. MCI emerged from bankruptcy in 2004, although many of its creditors were left unpaid. Some of these creditors included laid-off employees who never received severance or benefits. WorldCom’s co-founder and CEO, Bernard Ebbers, was later convicted of fraud and conspiracy and sentenced to 25 years in prison.

It didn’t get much bigger than Pan Am. Founded as Pan American Airways back in 1927, Pan Am became an American icon for its many airline innovations, blue logo, and the white uniforms of its staff. The company had a monopoly by the mid-20th century and even introduced the Boeing 707 in 1958. It seemed like the party would never end. But the airline industry was deregulated in 1978, an event that increased competition and instigated the collapse of Pan Am. It suffered throughout much of the ‘80s and desperately attempted to restructure, but the end was nigh and the company declared bankruptcy in 1991. The announcement was met with widespread shock and grief, as it signified the end of an American tradition.

The Enron affair is one of the most well-known financial scandals in American history, and the name “Enron” has since become synonymous with corporate fraud and corruption. Enron was founded in 1985 and quickly became one of the most prosperous suppliers of electricity and natural gas; in 2000, Enron saw over $100 billion in revenue. Or . . . did they? In 2001, Enron was revealed to perpetrating massive amounts of accounting fraud. The company quickly entered bankruptcy, some people went to jail, employees lost billions in pensions, and the ordeal caused massive shockwaves throughout the business world.

General Motors is one of the most iconic car companies of all time. In 2016, over ten million GM vehicles were sold around the globe. However, like most companies at the time (including rival car manufacturer Chrysler), GM suffered heavily in the great recession and went bankrupt in June 2009. They emerged from this financial purgatory roughly one month later, with significant help from the government through its Troubled Asset Relief Program. As a result of the bankruptcy, GM discontinued various brands, including Saturn and Pontiac brands.

Washington Mutual was once a holding company who owned the largest thrift institution in the United States. By 2007, Washington Mutual employed over 40,000 people, had over $188 billion in deposits, and had assets valued at over $327 billion. And, like other companies, including CNO Financial and MF Global, it all went kaput. In September 2008, the FDIC took control of Washington Mutual after $16 billion was withdrawn from the bank. The very next day, Washington Mutual Inc. filed for bankruptcy. By 2009, WaMu branches became Chase branches, bondholders lost $30 billion, and Washington Mutual had a reputation as the largest failed bank in American history.

The fall of Lehman Brothers is arguably the most notable and extreme example of bankruptcy in the history of the United States. Lehman Brothers was founded in 1850, and by 2008 it was America’s fourth-largest investment bank. However, Lehman Brothers became involved in the subprime mortgage crisis of the late 2000s, resulting in a host of financial liabilities that led to its declaration of bankruptcy in September 2008. At the time, the bank owned $639 billion in assets but were over $750 billion in debt. The bankruptcy was the largest in American history, and it significantly weakened the already-fragile financial markets at a vulnerable time.