Corporate Casualties in 2010

With thanks to Yahoo Finance and our friends at http://www.urbandaddy,wordpress.com, for the inspiration, here are the biggest corporate casualties of 2010.

When you look at the list, some will come as no surprise to you and the rest may be interesting. Odds are those you have not heard of, are bankrupt for a reason. However, a bunch of them are automobile lines as a result of this thing called a recession:

Here is the list that meant something to me. If I missed some, please let me know.

A&P. This grocery chain declared bankruptcy in December.

American Media. The publisher of such gossip rags as the Star and National Enquirer, saw a huge hit resulting from the prevelance and quickeness of information in the Internet (Hello, TMZ.com). By November 2010, American Media had a debt load seven times the value of the company, which drove it into bankruptcy.

Blockbuster. This movie-rental chain failed to notice the future happening all around it. While Blockbuster was doubling down on retail stores and dunning its customers with loathsome late fees, Netflix wooed millions of movie fans by mailing them DVDs and offering streaming video over the Web, and Redbox set up convenient kiosks offering overnight movies for a buck. No wonder Blockbuster declared bankruptcy in September.

Hummer. Cool in the early 2000s, 2008 saw the beggining of the end for this brand when oil-prices began to spike. Hummers were looked upon as evil, and the end came after parent firm General Motors declared bankruptcy in 2009.

Metro-Goldwyn-Mayer (MGM). This studio’s archives include classics like The Wizard of Oz, Dr. Zhivago, and Rocky, but a dearth of recent hits–plus debt piled on when a group of private investors bought the studio in 2005–led to a much-anticipated bankruptcy filing in November. MGM should be back on its feet by early 2011.

Mercury. Parent company Ford Motor has turned itself around and become nicely profitable, but it’s not bringing the middling Mercury brand along with it. The aging Mercury got sandwiched between the mainstream Ford lineup and the Lincoln luxury division, with Ford deciding two nameplates was enough. Since most Mercury models were glorified Fords anyway, few car buffs will miss it, but my wife misses her Cougar.

Movie Gallery, which ran Hollywood Video and was once the 2nd largest video-rental chain in the US, first filed for Chapter 11 protection in 2008, then filed again in February 2010 when its restructuring plan failed to gain traction, resulting in all 2400 US outlets being closed and 19,000 workers being laid off.

Newsweek. The Washington Post, which had long owned Newsweek–and lost millions on it in recent years–sold the title to 91-year-old billionaire Sidney Harman. for $1.00 in August.

Oriental Trading Company, declared bankruptcy in August, after writing off more than $400 million in debt.

Pontiac. It was once one of GM’s marquis divisions, with must-have muscle cars like the GTO and the Trans Am. But GM could never revive Pontiac’s faded glory, and when the automaker was forced to shrink following its 2009 bankruptcy, Pontiac got the boot.

Saturn, a newer GM division, and my first car, closed as well.

Yellow Pages. Is anyone surprised by this? I have 2 of them holding up my monitor, and I use http://www.Canada411.ca to look up phone numbers.

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Author: Warren Orlans

Welcome to inTAXicating. My name is Warren Orlans and this is my blog. With over 17-years experience in the taxation industry, 11 of them working for the Canada Revenue Agency (CRA), and the rest working in the private sector at large financial institutions responsible for resolving tax issues for corporations and individuals and the Canadian lead for a large US bank on FATCA implementation. My tax career began pretty much out of university at the CRA, in Collections, where I moved up, across, over and up again through their division with stops in Enforcement, Taxpayer Relief (then Fairness), Audit, Directors Liability, Training, Mentoring, GST, GST/HST, Payroll, Corporate Tax, Personal tax, and probably much more. If you have a collections, compliance or audit issue with the CRA, inTAXicating is the place you need to contact. inTAXicating works in strategic partnership with amazing tax lawyers, insolvency practitioners, mortgage brokers, debt counselling experts and much more. When dealing with governments, knowledge is power. We possess strong understanding of government so we know what the next step is before the government does. When you have a collections problem with the CRA, do you hire a graphic artist? No, you get a former collector who trained the staff, and who worked as a resource officer for 5 years. Then you know you are on the right track to resolving your tax problem(s). Others offer suggestions. We offer solutions! info@intaxicating.ca

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