Brand Name Companies that Have Gone Bust

These are some of the companies that a recent article by CNN.Money.com lists as having gone bankrupt in this unsteady economy.

Phoenix Coyotes

Perhaps this is the comeuppance for planting a hockey team in the desert. In May, the Phoenix Coyotes filed for Chapter 11 bankruptcy protection with up to $500 million in debts and less than $100 million in assets. Afterward, a hockey-worthy scuffle erupted between the two prospective new owners: Jim Balsillie, co-CEO of BlackBerry-maker Research in Motion, and Jerry Reinsdorf, owner of the Chicago White Sox and Chicago Bulls. While Reinsdorf stated he would keep the club in its adopted home, Balsillie wanted to move it back to Canada (The Coyotes began as the Winnipeg Jets prior to moving to Glendale, Arizona, a Phoenix suburb, in 1996). In mid-June, nevertheless, the bankruptcy judge ruled against Balsillie's $213 million bid and said the team would be auctioned off in August to anybody eager to keep the club in Arizona. Yet the squabbling between the two sides continues. Whoever wins, they're scoring a team that averaged less than 11,000 fans per game throughout the 2008 and 2009 seasons. This left the stadium nearly half empty at home games.

Hartmarx

Not even having ultra-dapper President Obama as a consumer could help Hartmarx. The Chicago-based clothing manufacturer declared bankruptcy in January, right after the president wore its suits for his inauguration and election night attire. The company listed between $100 million and $500 million in assets and liabilities, and noted in its filing a "substantial decline in discretionary apparel purchases by consumers and by the company's retail customers." Established in 1872, Hartmarx makes business, casual, and golf clothes for its own brands, which include Hart Schaffner Marx, Palm Beach, and Racquet Club, and has exclusive rights to market under additional luxury brands, such as including Tommy Hilfiger, Burberry men's tailored clothing, Ted Baker, Pierre CardinPierre Cardin, and Perry EllisPerry Ellis. At this time, the brands seem to be staying afloat under the guidance of British equity firm Emerisque, which bid $128.4 million for Hartmarx.

Six Flags

The economy has been quite the rollercoaster ride (No pun intended!) for Six Flags. The New York City-based amusement park operator went belly up in June, incapable of spinning off $2.4 billion in debt. But have no fear. The chain's 20 parks, which stretch from Montreal to Mexico City, will remain open. The Chapter 11 filing is "strictly a financial restructuring" of the company's debt, said President and CEO Mark Shapiro in a statement. The parks drew in 25 million visitors in 2008, and the company made $275 million. "Six Flags has been a favorite family destination for almost a half century. Our financial reorganization will best position our parks to entertain millions of guests for another 50 years," Shapiro added.

Crabtree & Evelyn

When you're scared you may lose your job, triple-milled soap, $18 body lotion, and aromatherapy spa treatments are likely to become less of a priority. The domestic portion of Crabtree & Evelyn filed for Chapter 11 bankruptcy protection in July with between $10 million and $50 million in assets, and just as much in debts. The Woodstock, Connecticut company was established in 1973 and built its brand on natural products that feature herbs, fruits, and fresh flowers. Yet as consumers watched Wall Street continue to plummet, they cut back in spending on consumer luxuries. Crabtree & Evelyn's 126 stores, mostly scattered in malls throughout the country, have seen a sharp sales pullback. The company’s real estate portfolio will go under the microscope as part of its bankruptcy filing. But for the time being, the stores will remain open. Crabtree & Evelyn also operates a website, which is unaltered by the filing, and distributes products to thousands of wholesalers. Crabtree & Evelyn is owned by Kuala Lumpur Kepong Berhad, a Malaysian company that is publicly traded there and invests in a variety of industries, including manufacturing, real estate, and retail.

Filene’s Basement

This bargain basement might have passed on a few too many deals to its customers. Filene's Basement filed for Chapter 11 bankruptcy protection in May with assets of up to $100 million and liabilities of as much as five times that amount. The company stated the credit crunch combined with consumers pulling in the reigns left its debt burden unmanageable. Fellow discount retailer Syms agreed to pay $65 million for the company, which was, in fact, established in a Boston basement in 1909. Syms bought 23 of the retailer's 25 store leases as well as its inventory, which includes everything from Seven jeans to Prada merchandise. The stores will continue operating under the Filene's Basement name.

Extended Stay

During a recession, travelers are more inclined to bunk up with pals to save money. The long-term hotel operator, Extended Stay, filed for Chapter 11 in June, buckling under a debt load totaling $7.6 billion at the end of 2008, according to court documents. The hotel chain, in the meantime, showed assets of merely $7.1 billion at the end of 2008 with sales of $1 billion for the year. Moreover, revenues plunged further as the recession worsened: The initial five months of 2009 saw revenue for each available room drop by 23.2% in comparison to the same time the year before. The hotel chain is popular among business travelers who have to work away from home for more than a night, offering apartment-like conditions with fully equipped kitchens, expanded workspaces, wireless Internet, onsite guest laundry facilities, and pet-friendly rooms. Throughout the bankruptcy process, the hotel chain, which has over 680 properties that are under a handful of regional names like Extended Stay America, Homestead Studio Suites, Studio PLUS, and Crossland will all remain open and in operation.

Crunch Gym

In 1989, New York City-based Crunch gym started out in the East Village as a basement aerobics studio without locker rooms or air conditioning. Over the last 20 years, its popularity has grown, mainly due to its reputation for creative classes, like Hip-Hop Aerobics and Co-Ed Action Wrestling. There are now 28 Crunch locations around the country. Yet in May, the company filed for bankruptcy, citing unmanageable lease contracts. In bankruptcy records, the gym's parent company, AGT Crunch Acquisitions, stated it had at least $500 million in assets and liabilities. The company has since entered into a purchase agreement with New Evolution Fitness Company, whose founder also started 24-Hour Fitness. The company has shut down two gyms, one in New York and another in San Francisco. Crunch intends to exit bankruptcy by the end of the summer.

Debt Relief USA

Debt Relief USA, also known as No Debt USA, couldn't seem to help itself. In June, the debt-consolidation company filed for Chapter 11 bankruptcy protection with $5 million in total liabilities and a mere $4.65 million in assets. Not only has the company filed for Chapter 11, it has completely closed down, leaving customers out of luck. "One of the unfortunate consequences is that you are left without the service you have paid for," its website currently reads, directing current clients to enlist in the help of their own attorneys. Moreover, the company site reported that it faces investigations from the Federal Trade Commission and by the Attorneys General of various states.