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.

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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.

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