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Thursday, December 31st, 2009

Big Names File Bankruptcy in 2009

As 2009 winds down, we'll take a quick look at some of the biggest brands and names in business that decided to file bankruptcy.

Big Brand Businesses Filing in 2009:

  • Chicago Cubs - The Northsiders briefly entered bankruptcy protection when the team was sold.
  • Phoenix Coyotes -The Coyotes are playing on, and playing well, despite failed attempts to sell the team.
  • Six Flags -Theme park faced difficulty, but that old guy is still dancing
  • Eddie Bauer -Clothing manufacturer sold, but still open.
  • Reader’s Digest -Popular magazine still publishing.
  • Trump Casinos -Maybe the Donald needs a new apprentice?
  • The Philadelphia Inquirer -Rough year for newspapers across the country
  • Chicago Sun-Times -Not to be out done by their crosstown rivals at the Tribune, the home of Rogert Ebert filed bankruptcy before being sold.
  • Bennigans -The popular restaurant chain closed up shop after filing.
  • Charter Communications -One of the country's largest radio station operators - 255 stations across the country.
  • Ritz Camera - Still open, but forced to shutter some shops
  • Samsonite -Luggage maker and retail store closed some shops, but still operating
  • Tavern on the Green -Future of famed New York restaurant still up in the air
  • Crabtree & Evelyn -Soap-seller still open
  • Filene’s Basement - Deals still available as clothing store purchased and still open
  • S&K Menswear -Suit retailer got unbuttoned, future still undecided
  • Gottschalks -Department store gone for good
  • Southern Voice – Large gay magazine in Atlanta quickly folded up
  • New York Off Track Betting Corp -State-run betting offices muddied in debt
  • Steak & Ale Restaurant and Roadhouse Grill -Steakhouses across the country got burned during the recession

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Posted in Year in Bankruptcy | 12 Comments »

Tuesday, December 29th, 2009

Top 10 Celebrity Bankruptcies of the Decade

It's been a rough decade economically, and not even celebrities were immune from financial turmoil. Some of the names on this list were no longer in the spotlight, while others encountered difficulty at the peak of their fame.

This list includes those who filed on personal debts as well as celebrity business owners who used bankruptcy to protect their brand.

  1. Randy Quaid (2000): The actor, famous for his role as Cousin Eddie in the National Lampoon's Vacation movies, had a rough decade. He ran into money problems and filed bankruptcy in 2000, ironically over a film called "The Debtors", which starred Quaid, was directed by his wife Evi, and was produced by the couple. The decade ended with Randy Quaid banned from stage acting, and the Quaids arrested for allegedly defrauding an innkeeper.
  2. Stan Lee (2001): Creator of Spider-Man, The Fantastic Four, The Incredible Hulk and The X-Men, Stan Lee got caught up in the dot-com bubble of the late 1990s. He and a business partner created Stan Lee Media, an internet-based comic book venture. However, the company quickly burned through its capital, Lee's partner was accused of securities fraud, and Lee and the company filed Chapter 11 bankruptcy.
  3. Mike Tyson (2003): After retiring from boxing and going through a divorce (plus getting a facial tattoo), the former Heavyweight champ found his finances in disarray. Tyson blamed lavish spending on cars, mansions and Bengals tigers, plus poor financial advice, for the state of his affairs, leading to his 2003 bankruptcy.
  4. Lorenzo Lamas (2004): The former Renegade and soap opera star filed bankruptcy for debts that included $200,000 for a private jet. He also owed on a Harley-Davidson motorcycle, a H2 Hummer, and alimony for his four ex-wives.
  5. Donald Trump (2004, 2009): Trump's Atlantic City hotel & resort company filed Chapter 11 bankruptcy twice this decade in order to reorganize debts related to construction. In the first bankruptcy in 2004, Donald Trump gave up his majority stake in his Trump Hotels & Casino Resorts company to creditors, which reemerged as Trump Entertainment Resorts. The second time around in 2009, Trump stepped down from the board. Trump has since reached a deal to reacquire the company.
  6. Michael Vick (2008): Vick's financial problems were directly tied to his legal ones. After being convicted on federal dog-fighting charges, Vick was left was heavy fines and no income to pay his obligations (or entourage). Vick, once of the highest-paid athletes in the country, filed bankruptcy from behind bars in 2008.
  7. Bill Buckner (2008): Sports fans will know that Bill Buckner is no stranger to bad luck. Despite a productive career in Major League Baseball, his error in Game 6 of the 1986 World Series became his legacy. After retiring, Buckner moved to Idaho and founded a car dealership. It was another error, and Buckner was forced to file bankruptcy in 2008 to recoup his losses.
  8. Lenny Dykstra (2009): Another baseball star, Dykstra became an entrepreneur after retiring from the Major League, and founded The Players Club, a glossy magazine for athletes, in 2008. The venture tanked, and led to at least 20 lawsuits. As a result, Dykstra filed Chapter 11 bankruptcy.
  9. Stephen Baldwin (2009): The youngest brother of the acting family, Stephen Baldwin had a resurgence this decade—as a professional reality show cast member. However, his appearance fees were not enough for the actor to keep up on his mortgage and other debts. Baldwin and his wife filed bankruptcy in New York in early 2009 as their home was in foreclosure.
  10. Sinbad (2009): The one-named comedian may have made a career as a family-friendly entertainer, but allegedly failed to pay taxes on his income from Jingle All The Way and his other hits. The state of California filed a lien for more than $2.5 million in unpaid taxes in 2008. Sinbad filed bankruptcy in December, 2009.

And an honorable mention goes to...

  • Jose Canseco (2008): The baseball star and New York Time best-selling author didn't file bankruptcy, but he did walk away from his Encino, Calif., mansion, which went into foreclosure after he stopped paying the $2.5 million mortgage. Canseco was one of the first celebrities to admit being caught up in the foreclosure crisis.

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Posted in Setting the Record Straight about Bankruptcy | 4 Comments »

Tuesday, December 15th, 2009

Shakira: I Made It Because of Bankruptcy

In a recent report from CNNWorld, Columbian-born pop singer Shakira declares that her family’s bankruptcy when she was a child motivated her to become the successful, world-famous pop star she is today.

In addition to having recorded record-breaking number of worldwide hits and a wildly successful career as a musical entertainer, Shakira founded the Barefoot Foundation, a charity that helps promote and fund education for poor children in Columbia, where she grew up.

Bankruptcy as a New Beginning

In the article, Sharkia shares her family's experience with debt, including having to sell all of their furniture. However, her parents wanted their young daughter to know that bankruptcy wasn't the worst position to be in. Shakira’s experience provides one example about what bankruptcy can and cannot do.

  • It IS a chance to start over. Those of us who have or have had problems with debt don’t need to be shamed or scolded. We know we’ve messed up. Bankruptcy offers us a chance for to start from the beginning, without the onerous weight of debt holding us back.
  • It IS NOT a life ruiner. Bankruptcy doesn’t ruin people’s lives. It provides a solution to an overwhelming problem. Yes, your credit will be temporarily hurt by a bankruptcy filing. But it—and you—can recover, assuming you heed the advice in the financial management course and develop a new relationship with money and credit.
  • It IS a major step. Shakira tells of her parents' bankruptcy as a life-changing event. And for many people, it is. Filing bankruptcy means you have to admit you’re over your head in debt and you need help getting out. But it also means you’re ready to start again and learn from your mistakes.
  • It IS NOT a scarlet letter. As Shakira shows (as well as other celebs including Larry King, Cyndi Lauper, and Abraham Lincoln), bankruptcy does not brand you for life. In fact, if you’ve got the right attitude, it can provide motivation to improve your finances and strive to reach other goals, as well.

True, most of us won’t become Shakiras or Abe Lincolns. But the lesson here is valuable just the same: debt does not define us unless we let it. So, instead of looking at your financial difficulties as a dead end, see them as an opportunity to start over and reinvent yourself. I know it’s not easy, but it’s also not impossible.

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Posted in Setting the Record Straight about Bankruptcy | 2 Comments »

Wednesday, October 7th, 2009

Nebraska Football Star Filing Bankruptcy, Must Sell Rings, Trophy

Former Nebraska lineman Aaron Taylor is hoping to regain his NCAA championship rings and other memorabilia he surrendered after filing bankruptcy in an upcoming auction, according to a report by the Omaha World-Herald.

Taylor, who was part of three championship-winning teams in the 1990s, filed bankruptcy in Nebraska's western district last month, stemming from debt related to a restaurant he and other former NU stars opened in 2006.

As part of his chapter 7 filing, Taylor forfeited his three national championship rings, four district championship rings, and Outland Trophy. His petition listed assets of $5,300 and debts of about $110,000, according to the OWH article.

Because the value of the memorabilia is difficult for the bankruptcy trustee to determine, an auction is scheduled to take place Oct. 31 in Scottsbluff, NE, with proceeds going to pay Taylor's creditors. Taylor hopes that, with help from his parents and donations from fans, he will be the winning bidder for his college sports memorabilia.

Nebraska bankruptcy laws allow exemptions of up to $2,500 for "any personal property".

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Posted in Bankruptcy News and Events, Financial Literacy | 4 Comments »

Tuesday, July 28th, 2009

Michael Vick’s NFL Reinstatement to be used in Bankruptcy Case

The sports world is abuzz with the recent announcement by NFL commissioner Roger Goodell that Michael Vick will be allowed to play professional football this fall.

The reinstatement is the latest in a long and winding series of events and fall from grace for the former Atlanta Falcons who was so popular his image graced the cover of video games.

Vick recently finished serving a 23-month prison sentence for charges related to the illegal dog-fighting operation he ran out of his house. Shortly after the charges were announced he was suspended indefinitely from the NFL by Goodell.

The reinstatment could have huge implications on Vick's bankruptcy plan. Vick filed bankruptcy on more than $20 million in debt. He lists $16 million in assets, but is trying to keep many of his assets.

In April, a judge rejected Vick's Chapter 11 bankruptcy. A chapter 11 is rare for individuals, but Vick's case is somewhat unique do to the size of his estate and debts, and his desire to retain property.

But the plan involved a $1 million payment to his creditors upfront, and that was cash Vick didn't have. He tried to auction off one of his homes, but no bids were made on the $3.2 million residence.

A new bankruptcy plan is built around his ability to once again earn big bucks in professional. Before his arrest, Vick was in the middle of a 10-year, $130 million contract.

But it's unlikely he'll be able to command those dollars again. Several teams, including his former team the Atlanta Falcons, have already said they aren't interested in signing the quarterback.

But there's still a good chance that one of NFL's 32 teams will take a chance on the former star, even though he hasn't played since the 2006 season.

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Posted in Bankruptcy News and Events | No Comments »

Friday, July 24th, 2009

Celebrity Bankruptcy: 5 Baseball Players Who Went Bankrupt

Money troubles come to the best of us.

Check out these MLB players who turned to filing bankruptcy when their money troubles caught up to them:

  1. Lenny Dykstra, former star center-fielder for the New York Mets and Philadelphia Phillies, filed for Chapter 11 bankruptcy protection this month. He has no more than $50,000 of assets and between $10 million and $50 million of liabilities.
  2. Bill Buckner, a former Red Sox player, went bankrupt in 2008 after his post-athletic career car dealership failed.
  3. Baseball Hall of Famer Gaylord Perry went bankrupt in 1987 after filing for Chapter 7 bankruptcy. Having played for an astounding eight different MLB teams over the course of his 35-year career, Perry’s post-MLB career farming endeavors failed in the mid-eighties.
  4. Pitcher and predicted Hall of Fame nominee Tony Gwynn filed bankruptcy in his sixth season in the league, citing back taxes of slightly over $1 million and poor investments, which he blamed mainly on his agent.
  5. Rollie Fingers, a Hall of Fame pitcher inducted in 1992, filed bankruptcy in 1989 after investments in pistachio farms, Arabian horses and wind turbines went awry. It’s said he owed more than $4 million and his assets were listed as less than $50,000. He was also involved in a tax scandal in 2007.

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Posted in Bankruptcy News and Events | 2 Comments »