Several household-name companies are falling victim to the current economic downturn. According to CNNMoney.com, some big name companies have either headed to bankruptcy court or are about to. You may have seen some of them on the news already, but grouping them all together puts a different feel to it. Check out the following list of some big names.
First up is Six Flags. Six Flags actually had a big year in2008. The parks made $275 million and they entertained 25 million guests. If you're an amusement park fan, don't fear, because Six Flags isn't closing anytime soon. The president of the company, Mark Shapiro, said the Chapter 11 is "strictly a financial restructuring". The main reason for the bankruptcy is that the company can't shake $2.4 billion in debt.
Next, the Phoenix Coyotes filed for bankruptcy in May. Many people never imagined seeing pro sports teams struggling like they are, but the current recession is hurting them just as much as everybody else. The Coyotes are averaging fewer than 11,000 guests over the last two seasons at each of their home games. That's definitely not enough tickets to help pay for $500 million in debts. The good news for the team is that people are interested in buying them. The bad news is the buyers are in a bickering match. In August the team is supposed to be auctioned off.
Another big name bankruptcy is the Extended Stay Bankruptcy. The hotel chain is popular for regional names Homestead Studio Suites, Extended Stay America, Crossland, and Studio PLUS. All of the properties will remain open, but the company needed to restructure $7.6 billion in debt. The company's revenues have fallen severely since the beginning of the economic downturn, which led to a June bankruptcy.
A final bankruptcy of note was with the clothing company Hartmarx. Hartmarx has had some good publicity recently. Hartmarx was the maker of President Obama's inauguration suit, but even the good publicity hasn't helped the company's finances enough. In fact, the bankruptcy was filed just after the January inauguration. The company listed $500 million in debts, and said that the bankruptcy was the result of a "substantial decline in discretionary apparel purchases by consumers and by the company's retail customers." If you haven't heard of Hartmarx, you may have heard of some of their brands. Hart Schaffner Marx, Palm Beach and Racquet Club are a few.
Anyway, you don't have to look far and you will find several well known companies that have had to file for bankruptcy. The current economic downturn is hurting almost everyone. If you have debt trouble in your own personal financial situation, you should contact a bankruptcy attorney today to see where they can help you.