You may be earning thousands of dollars in terms of revenue and suddenly that profit may be converted into a loss. Business is a big risk. Sometimes it is still recoverable or sometimes you just happen to find yourself stranded means that you have no option but to abandon the business.
However, it is not compulsory that every time you face a loss and circumstances forced to shut down the business. We have a lot of examples in which different companies were shut down overnight and people thought that they are done with their business but they did come back from the dead. We can have a number of examples from different fields.
Reasons for Loss in the Business:
There are thousands of reasons why companies went bankrupt starting from financial to strategic. Just for understanding, take into consideration the example of Nokia; a well renowned mobile phone company. If you go a few years back, Nokia was the lone king in their field but lost their huge share of business due to the advancement in the technology. The advancement was a new operating system and it became more popular among the consumers but the company never bother to follow the customer requirement.
As a consequence, they lost their place in the market. Similarly, companies often take loans from a lot of loan providing firms. According to the CEO of Buddy Loans, “It is quite common that the loan comes with few stipulations or conditions and failing to fulfill these requirements will have a penalty which can be quite severe in some cases.”
However, there are some companies that almost went bankrupt and just when the people thought that they are exiting the business for forever, they bounce back. You may have a shock after looking at a few of the companies that are being put here for example. So, here are the companies that came back after almost dying.
Yes, it really happened. Although it is unbelievable here is a very good example of how harsh a business can be sometimes. Apple was on the verge of bankruptcy but they never actually filed for it. Another interesting fact is that they were saved by their arch-rivals Microsoft. They provided Apple with a $150 million loan. However, experts believe that this goodwill gesture was for their own good. They thought that with Apple being wiped out of the market, authorities may consider it as the monopoly as there will be no one after Apple to challenge them in the market.
Everybody knows general motors as the heavyweight of automobiles business. But this heavyweight went bankrupt in 2008 due to the great economic recession and the financial crisis. However, the bankruptcy was ultimately bailed out by Federal Govt.
Ally Bank was the financial partner of General Motors. The bank was saved by U.S. Treasury Department. The company now known as Ally Financial is reported to have been into profits and the graph is showing positive results in the future.
Fans of Hollywood must be familiar with Marvel studies as they produced some of the greatest movies of all time like Spiderman, Thor, Guardians of Galaxy and many more. In 1996, the studio filed for bankruptcy. However, it was the time when the studio was only producing comics. Today, they are worth billions of dollars.
Once a dominant company in the business of oil and gas was forced to file for bankruptcy by its rival company. Pennzoil filed a legal case against them claiming that they owed them $10.5 billion. Texaco lost the case. Today, they are a part of Chevron.