Top Businesses that Bounced Back from Insolvency or Bankruptcy

When an organisation finds itself failing, it usually looks towards insolvency or bankruptcy. These processes allow for a restructure and reorganisation of the whole business, its liabilities and its assets. It gives them a chance to properly consider the position that they find themselves in and make changes so that operations do not have to shut down completely. There are some instances where businesses are successful at doing this and, as such, are able to continue trading and bounce back. On the other hand, a lot of organisations will liquidate their assets and call it a day.

What is Insolvency?

Insolvency is a term which represents an individual or a business being unable to meet any of their financial obligations as their debts become due. Usually, when an insolvent company or person actually becomes involved in insolvency proceedings, they will have informal arrangements with their creditors, like setting up alternative payment methods. Insolvency usually arises because people are bad with cash management or do not have good enough income to meet their liabilities.

What is Bankruptcy?

Bankruptcy is very similar as these proceedings are also initiated whenever an individual or a business is not in a strong enough position to pay back their outstanding debts or obligations. Usually, a petition will be filed with the debtor or on behalf of the creditors. All of the assets that make up the debtor’s business or estate will be assessed to determine how the outstanding liabilities can best be settled.

Companies That Never Bounced Back

A number of businesses have found themselves in a bad financial situation and need to file for insolvency or bankruptcy. A lot of these businesses end up calling it a day and not bouncing back. Some of the famous examples include the Lehman Brothers, Enron and WorldCom. That being said, it’s not always bad news as there have been a lot of instances where following insolvency or bankruptcy, companies have been able to bounce back and, as such, continue to have a promising future. In fact, some of these businesses are now recognised as the most successful and famous organisations in the world.


Yes, it’s pretty hard to believe that what we now consider one of the most successful businesses in the world was once on the brink of failure. Apple never actually filed for bankruptcy formally, but back in 1997, they were on the verge of going completely bust. Their rival ended up saving them at the very last minute; Microsoft swooped in and invested $150million that saved the company. There are a number of theories as to why Microsoft did this, but a lot of people think it’s because, without their main competition from Apple, many regulators would see Microsoft as having a monopoly.

General Motors

General Motors were once the largest automobile manufacturer in the world, but in 2008, due to the financial crisis, they filed for bankruptcy. They were bailed out by the federal government, a bailout which ended in December 2013.

Alongside the bailout that general motors received, Ally Financial was also given a helping hand by the US Government. Ally Financial were the auto-financing arm of General Motors, so as the company began to struggle, so too did its subsidiaries.

Marvel Entertainment

A good example of how reshuffling a company’s assets and looking at business plans can help an organisation is Marvel Entertainment. In 1996 they were on the brink of collapse and had to file for bankruptcy. They managed to stop themselves from shutting up shop completely and, after looking at how they could move forward, decided to explore the movie industry. The rest, as they say, is history as Marvel is now one of the biggest names in entertainment, with massive movies attached to them such as Guardians of the Galaxy, The Avengers and Spiderman. The properties of the company as a whole are now worth billions, and the company has a following of millions of loyal fans from around the world.

Six Flags

There are 26 Six Flags theme parks and waterparks throughout the US that are visited daily and are home to some of the world’s biggest, best, and fastest roller coasters. The company’s trajectory has also been a bit of a roller coaster ride as back in 2009, it declared bankruptcy and found itself in about $2.7billion in debt, which it found tough to pay. Following the sale of some assets and a move around in the company, the organisation was able to come back from bankruptcy in 2010.

Is Your Business Bankrupt?

Thanks to a number of different factors like the energy crisis, many businesses throughout the UK and the rest of the world are finding themselves in a financially tricky situation. This means that a lot of organisations are declaring bankruptcy. You can tell if your business should consider bankruptcy depending on whether you can pay your bills and if you find yourself in a position where the liabilities you owe exceed your organisation’s assets.

If this is the case, you should stop trading and not pay anyone. There is help out there if you believe you need to file for bankruptcy, and as can be seen from the above, doing so does not necessarily mean the end of your business.

Do You Need Help with Your Finances?

If your business finds itself in a position where you need assistance with your finances, then consider getting in touch with Simple Liquidation. Our team of experts will be able to assess your business’s current position and then consider the options available to you so that you move forward in the most efficient way possible. If you have any questions or want more information, do not hesitate to contact us.