General Motors made it clear several months ago that it would use its 2009 bankruptcy to shield itself from liability in lawsuits regarding the now massive ignition switch defect recall. Yesterday the carmaker reiterated its stance that it can’t be held responsible for the bad behavior of the “Old GM.” [More]
bankruptcy
Bankruptcy For RadioShack Is Probably Unavoidable
By 9.11.14
Wall Street analysts, the people who make big bucks keeping track of these things, say that bankruptcy for Radio Shack is probably inevitable. They were saying that after the retailer announced its quarterly results yesterday, losing money for the tenth straight quarter in a row. [More]
Seven Crumbs Locations To Reopen Next Month With The Addition Of Non-Cupcake Treats
By 8.27.14
If the closure of Crumbs Bake Shop last month left a cupcake sized hole in your heart, you may be able to fill that void next month as the new company operators prepare to reopen at least seven locations. [More]
Parents Stuck With $200K In Student Loan Debt After Daughter Dies
By 7.29.14
The last thing families want to deal with after the death of a loved one is a phone call reminding them of their departed’s debt. But that’s the case for a number of parents who have inherited the obligation to repay the student loans they co-signed for their deceased child. [More]
Crumbs To Rise From The Ashes… And Become Just Another Treats Shop
By 7.14.14
Three years ago, cupcake chain Crumbs went public, based on the notion that its monstrously large treats were so unique that consumers would want a Crumbs store in every city, town, and hamlet from Portland to Portland. But since just about anyone can bake a decent cupcake and throw a bunch of sweet stuff on top of it, people started their own cupcakeries instead of buying into the Crumbs model, and the company’s stock price nosedived from an initial high of around $13 to just a few pennies, all before Crumbs shuttered its stores last week. But the chain might have a savior — who sees Crumbs’ future… as just another store to sell sweet junk food. [More]
Expected Bill Would Allow Private Student Loan Debt To Be Discharged In Bankruptcy
By 6.25.14
If at first you don’t succeed, try again with a more drastic measure. Just two weeks after a bill to allow private student loan borrowers to refinance at lower interest rates failed to gain traction in the Senate, a new bill expected to be introduced this week takes things a step farther. [More]
GM Asks Bankruptcy Court To Block Ignition-Related Lawsuits
By 4.22.14
A few weeks back, new General Motors CEO Mary Barra hedged on whether her company would hide behind the shield of its 2009 bankruptcy in order to block lawsuits tied to the ongoing ignition-related recalls, telling lawmakers only that “we have civic responsibilities as well as legal responsibilities.” In the weeks since, GM has made it very clear that it will do everything it can to use its own financial incompetence and ineptitude to put up a wall against these lawsuits. [More]
Coldwater Creek Files For Bankruptcy Protection, Planning Big Farewell Sale
By 4.11.14
Where will all of the women in the world shop for quality clothes at good prices? Fine, there are plenty of other clothiers, but that doesn’t make the demise of Coldwater Creek any less sad. The stores aren’t closing just yet, but that will be the next step after the retailer filed for Chapter 11 bankruptcy protection. [More]
Match Made In Mall Heaven: Spencer May Be Buying Brookstone
By 3.27.14
Earlier this year, we told you about the questionable future of mall mainstay Brookstone, which has been mulling over the need to file for bankruptcy protection in order to keep selling massage chairs and gadgets that break a week after you buy them. That fate still looms for Brookstone, but its salvation may ultimately come from another mall mainstay that gives me flashbacks to endless hours spent perusing Iron Maiden posters and flipping through the pages of Truly Tasteless Jokes books. [More]
Quiznos Makes Chapter 11 Bankruptcy Official, Must Win Back Customers And Franchisees
By 3.14.14
Quiznos announced today that, as we reported a few weeks ago, the company will be filing for Chapter 11 bankruptcy protection, a move that will let the chain cut its debt load by about 2/3. That’s great news for the corporate headquarters, but will dissatisfied franchisees be happy with the plan? [More]
Sbarro Officially Files For Bankruptcy Protection For Second Time Since 2011
By 3.10.14
We told you last week that mediocre pizza-slinger and mall mainstay Sbarro would likely be filing for Chapter 11 bankruptcy protection. Today, it made that filing official, making this the second bankruptcy for Sbarro since the spring of 2011. [More]
Sbarro Planning To File For Chapter 11 Bankruptcy Protection… Again
By 3.6.14
Like my Great Uncle Aloysius always used to say — if at first you don’t succeed at restructuring your failing pizza chain under Chapter 11 bankruptcy protection, try, try again. After its first round with Chapter 11 didn’t work out so well, Sbarro is reportedly planning to file for bankruptcy again. [More]
Mall Mainstay Brookstone May Go Bankrupt Because You’re Not Buying Enough Massage Chairs & iPod Robots
By 2.13.14
Brookstone, better known as the store in the mall where you try out all those cool gadgets and massage chairs you’ll never buy, is reportedly considering filing for bankruptcy protection, but don’t expect any awesome liquidation sales in the foreseeable future. [More]
‘You’re Not Bankrupt? Our Bad’: Fifth Third Bank Accidentally Reports Customers As Bankrupt
By 2.12.14
How does go about accidentally being listed as bankrupt? Doesn’t seem possible, what with all the paperwork and such, right? Unless, of course, your bank takes the initiative and does it for you. And that’s just what happened for several Fifth Third Bank customers recently. [More]
One Company Is Working Hard To Make Sure Your Student Loans Stay With You Until You Die
By 1.3.14
Sometimes, terrible things happen in life. When something like cancer strikes, despite your best intentions and hardest efforts, medical bills and unemployment can leave you in a position where paying off your student loans is just not a thing you can make happen. [More]
Judge Orders Bank Of America To Pay $10K/Month If It Wants To Keep Hassling Couple
By 10.7.13
Here’s how inept Bank of America is. Not only did the bank ignore the fact that a couple’s mortgage debt had been discharged in bankruptcy, continuing to harass them for a debt they no longer owed, it also ignored messages from the bankruptcy court judge. That is until after the judge imposed a $10,000/month sanction on the bank. [More]
Scooter Store Files For Bankruptcy After Overbilling Medicare At Least $47 Million
By 4.15.13
If you watch daytime TV or have been stuck watching daytime TV while visiting your parents, surely you’re familiar with The Scooter Store. The power wheelchair vendor has had some trouble lately, including accusations of Medicare and Medicaid fraud, a raid by the FBI, and even a lawsuit from the company’s hometown, of New Braunfels, Texas. The company laid off most of its employees, and plans to deal directly with health care providers, rather than blanketing the airwaves and selling directly to consumers. [More]
Judge Tells Outgoing American Airlines CEO He’s Not Getting $20 Million Payout
By 4.12.13
A couple weeks back, the federal bankruptcy judge overseeing American Airlines’ attempts to get back to profitability approved the carrier’s merger with US Airways but held off on giving approval to a proposed $19.9 million payout to American CEO Tim Horton, who will be out of a job if the merger goes through. Last night, the judge finally got around to ruling on that matter, and it was probably a sad evening in the Horton house. [More]
