14 Bankruptcies

Here are 14 companies that filed bankruptcy…

1. Phoenix Coyotes – They started as the Winnipeg Jets before moving to Phoenix in 1996.  At filing, the company had $500 million in debts and less than $100 million in assets.  That’ll teach the business people that a hockey team might not belong in the desert.  Source

2. Hartmarx – The maker of President Obama’s suits, has filed for bankruptcy in January.  The company lists between $100 million and $500 million in assets and liabilities.  There is currently a bid for Hartmarx from Emerisque.  Source

3. Six Flags – The amusement company filed for bankruptcy after failing to refinance $2.4 billion in debt.  A company spokesman has said this is strictly a financial restructuring and will not affect any park operations.  Source

4. Crabtree & Evelyn – A high priced soap maker has listed between $10 million and $50 million in assets and at least as much in debts.  The company founded in 1973 has built it’s brands on natural products that use herbs, fruits and fresh flowers.  For now their stores will remain open and the website will remain in operation.  Source

5. Filene’s Basement – The chain filed for bankruptcy with assets of $100 million and liabilities as high as 5 times that amount.  Syms, a competing retailer has agreed to pay $65 million for the chain.  Included in the purchase are 23 or 25 stores as well as inventory.  The chain will continue to operate under the Filene’s Basement name.  Source

6. Extended Stay – The hotel chain filed in June with total debt of $7.6 billion and assets of $7.1 billion.  Room revenue plummeted by 23.2% during the first 5 months of 2009 compared to a year earlier.  The hotel chain will continue operations under it’s existing brands of Extended Stay America, Homestead Studio Suites, Studio Plus and Crossland.  Source

7. Eddie Bauer – The clothing retailer based in Washington filed in June.  It’s latest filing was in 2003 and emerged in 2005 and was spun off into it’s own company.  The chain, formerly known as Spiegal listed between $100 million and $500 million in assets.  CCMP Capital has bid $202 million for the chain and plans to keep all 371 stores open as well as catalog and web site operations.  Gift cards will be honored until September 1, 2009 or until the sale of it’s assets go through.  Source

8. Crunch Gym – The chain began in 1989 as a basement aerobics studio and over the last 20 years has grown to 28 locations around the country.  In may it’s leases became unmanageable as it listed at least $500 assets and liabilities.  New Evolution Fitness Co has entered into a purchase agreement.  Most locations will remain open, but may be relocated to get a cheaper lease.  Source

9. Pilgrim’s Pride – Rising raw material prices compounded by lower demand led the company to file for bankruptcy in December 2008.  The company listed $3.75 billion in assets and $2.72 billion in debts.  Operations will continue and no further layoffs are planned.  Source

10. The Daily Blossom – The floral arrangement design company lists just under $50,000 and liabilities between $100,000 and $500,000.  Source

11. Debt Relief USA – The debt consolidation company lists $5 million in liabilities and $4.65 million in assets.  The company has shut down and left it’s customers without services they paid for.  Source

12. The Tribune Co – The owner of the Chicago Tribune and LA Times filed at the end of 2008.  The company will operate normally while in bankruptcy which was designed to lighten the debt load.  Source

13. Vallejo, California – The town in California filed bankruptcy as property taxes plunged.  The town is home to one of Six Flags most successful theme parks, which has also entered bankruptcy protection.  Source

14. Lear corp – The company manufactures seats and electronics for cars lists $1.3 billion in assets and $4.5 billion in debt.  The company has already found financing and is expected to exit bankruptcy within 60 days.  Source

Seven more banks fail

Seven more banks fail, pushing 2009 totals to 52, over double total failures for all of 2008.  The latest banks to fail are based in Illinois and Texas.  The six banks in Illinois were all owned by the same family and all had the same exposure risk due to similar business models.  A total of 12 banks have failed in Illinois this year.

The failure in Texas is the first in the state this year.

Total cost to the FDIC from the seven recent failures is $314.3 Billion pushing total cost this year for all failures to just over $12 Billion.  For all of 2008 failures cost $17.6 Billion.

Who gets what?

• The State Bank of Lincoln (Lincoln, IL) will receive all deposits from John Warner Bank (Clinton, IL).  Total deposits $64 million. All three branches will be converted.
• The First National Bank of Beardstown (Beardstown, IL) will assume all assets and deposits of The First Bank of Winchester (Winchester, IL).  Total assets of $36 million and desposits of $34 million.  Both branches will be converted.
• The Harvard State Bank (Harvard, IL) will assume almost all of the assets and all of the deposits of Rock River Bank (Oregon, IL).  Assests total $77 million and deposits of $75.8 million.  Assets totalling $72.9 million will be acquired by The Harvard State Bank, the balance will be held by the FDIC to dispose of later.  All four branches will converted.
• Galena State Bank and Trust (Galena, IL) will assume all deposits from Elizabeth State Bank (Elizabeth, IL) and $52.3 million of it’s $55.5 total assets, the balance will be held by the FDIC to dispose of at a later date.  Both branches will be converted.
• First Financial Bank, N.A. (Terre Haute, Indiana) will assume all deposits of The First National Bank of Danville (Danville, IL) and $148 million of it’s $166 million.  All seven branches will be converted.
• State Bank of Texas (Irving, TX) will take over all deposits and assets of Millennium State Bank of Texas (Dallas, TX).  I’ts one branch will be converted.
• PrivateBank and Trust Company (Chicago, IL) will assume all deposits of Founders Bank (Worth, IL) and $888.4 million of it’s $962.5 million of it’s assets, the FDIC will retain the remaining assets until a remaining date.  All eleven branches will be converted.

Source

GM Bankruptcy Plan Approved

After receiving almost $50 Billion from the US government, the bankruptcy judge approved GM’s emergence from Chapter 11 after a 4 day period where creditors will be able to file appeals.

Source

Six Flags Enters Chapter 11

The Six Flags amusement park company has entered Chapter 11 bankruptcy protection to help eliminate some of it’s $2.4 billion in debt.  The company has been in negotiations to try and restructure the debt, but efforts have been fruitless in today’s economic climate.  Six Flags is looking to eliminate $1.8 billion of it’s debt so it can focus on running it’s parks which have seen an increase in visitor counts this year.

Source

Michigan to close 8 prisions

Michigan will close 3 prisions and 5 prision camps in effort to plug the state budget gap of $1.4 billion.  The move is expected to save around $120 million.  No prisioners will be released early and will be transferred to other prisions.  About 1,000 workers will lose their job as part of the closings.

Source

Kiddieland in Chicago to Close

Kiddieland in Chicago will close after the summer.  The park operators lease the land from a trust and the lease runs out the end of this year.  The park has announced it will close by the end of September.

Read the full article

Chrysler Won’t Repay Feds

Chrysler won’t be repaying the federal bailout money in the amount of $7 billion.  Taxpayers will however be receiving something for their money in the form of Chrysler stock, which will be sold at a later date once the company recovers.  This has the potential to actually make money for taxpayers if the company can complete the turn around and start making money again.

Read the full article on CNN

Chrysler Bankrupt

It didn’t take long for Chrysler to take one to the head.  Chrysler filed for bankruptcy Thursday 4/30/09 and today announces 4 plants identified to close by the end of 2010.  If they’ve identified them, why wait almost a year and half to close them?  Shut them down in 2 months (legally required 60 days notice for large layoffs).  I’m sure they could ramp down production in that time and have a fire sale on the equipment, or move it to more productive factories.  The Obama administration in Washington states the process will be relatively quick (30-60 days) and the deal with Fiat will also close during that same time period.  

According to government officials, a new company will be formed that will buy all the assets of Chrysler including contracts relating to suppliers, labor and dealers.  Everything else will be dumped by the bankruptcy court.  

As part of the deal, Chrysler Financial will be completely shut down and all loans will be made through GMAC which will affect 3,400 jobs.

CEO Robert Nardelli will be leaving the company after the merger and bankruptcy are completed.  Fiat will take over all management functions of the company at that point.  One bright side is that Fiat has committed to building small cars that it now builds in Europe and sells in the US.

The ownership is as follows: 

UAW – 55%

Fiat – 20% (option to increase to 35%)

US Governement – 8%

Canadian Government – 2%

The four plants slated to close include: (About 5,000 jobs)

1. Sterling Heights, Michigan – Assembly plant for the Chrysler Sebring and Dodge Avenger.

2. St. Louis assembly plant that for the Dodge Ram pickup.

3. Twinsburg, Ohio stamping plant.

4. Kenosha, Wisconsin engine plant.

Company spokesman Ed Garsten said all affected workers will be offered positions in alternate locations depending on how fast Fiat ramps up production of it’s small cars.

Read the full article

Dial A Mattress Bankruptcy

Dial A Mattress (founded in 1976) filed bankruptcy in late March and has plans to sell to rival Sleepy’s.  Creditors filed suit for over $1.7 million.  Sleepy’s stepped up and offered to provide debtor in possession funding so Dial A Mattress could continue operations.  

Read the whole article

Worlds of Fun & Valleyfair 4 Sale

Cedar Fair has put two more of it’s parks up for sale.  It’s not necessarily the economy pressuring the company, but the previous purchase of Paramount Parks from CBS in 2006.  Cedar Fair happily spent the money (which is now debt) to buy the Paramount Parks in the booming economy, but is now probably regretting it’s decision since the economy tanked.  

Read the full press release from Cedar Fair