Top 10 Major Company Shut Downs

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6. Waldenbooks

We all love items like books and video games. Not only that, but magazines, comics, calendars, and even gift cards. That’s why we had a retail chain of stores called Walden Books in the US. It opened in 1933, and had several other chains such as Waldensoftware for videogames and a children’s chain named Walden Kids. Despite the great success, the retail chain had a downfall due to the declining economy. Many stores closed during the 2009-2010 season due to bankruptcy, leaving many employees without work. Eventually, Waldenbooks closed indefinitely in 2011.

 

7. Yamato Life Insurance Company

A long running insurance company established in Japan in 1889. With the recession taking place, the long running life insurance provider had to draw to a close in 2008. Their debt exceeded assets by about 11 billion dollars. Their debt totaled up to 269.5 billion dollars.

“The fact that insurers are starting to struggle with their investments is a harbinger that even pension funds may start to suffer given the market environment,” said Tetsuo Inoue, chief strategist at Proud Asset Management Japan Co. in Tokyo. “It’s a tough situation.”

The company tried hard to keep in a safe place, but all of their risk taking proved to be making the situations even worse and deadly. Yamato’s assets have been transferred to the American based life insurance company, Prudential Financial.

 

8. One.Tel

One.Tel was an Australian based telecommunications company, started out in 1985. It was the fourth largest telecommunications company there was, but spending too much money, that is beyond budget, turned out to be too much of a serious circumstance for them. At the time, One.tel’s collapse was the third in a matter of weeks. The company owed $600 million dollars to over 3,000 creditors after losing $12 million in just a week. The company needed over $400 million just to be visible. All of One.tel’s employees were laid off. The closing took place in 2001.

 

9. Grand Royal

Grand Royal made its debut as one of the most successful record labels yet. It included magazines and websites as well. It made the Beastie Boys what it is. Even to this day, the younger generation knows who they are, and sing along to their songs. It was doubtful to the outside world whether Grand Royal would be as successful without the existence of the Beastie Boys, but Grand Royal proved everyone wrong. But the success had to go in 2001 after a severe debts and losses.

This is one of the most difficult decisions we’ve ever had to make,’ said co-founder Mike Diamond a/k/a Mike D of Beastie Boys. “Over the years the Grand Royal family had grown to include some of the most talented musicians and staff in the business. It’s tragic that the same growth has also produced an overhead and infrastructure that can no longer viable.’

 

10. Pets.com

Pets.com was an online, San Francisco based online store where customers could buy or adopt such animals as cats and dogs. It opened in 1998, but closed merely 2 years later due to.. what else? High prices. But unlike any other businesses, Pets.com did not apply for bankruptcy. Pets.com blamed the difficult environment of the Business to Consumers internet based companies have faced at the time.

 

 Sources:

http://www.terramedia.co.uk/documents/BSB.htm

http://money.cnn.com/magazines/fortune/fortune_archive/1990/03/12/73170/index.htm

http://www.oanmedia.com/2006/11/caliente_couple_at_cafe_fuego.php

http://www.surfermag.com/features/aloha-airlines-closes-4-1-08/

http://www.telegraph.co.uk/finance/2801987/Music-Zone-collapses.html

http://www.dailyfinance.com/2009/11/05/borders-will-axe-200-waldenbooks-stores-1-500-jobs/

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a3ai_Qgp6uNI

http://www.wsws.org/articles/2001/jun2001/onte-j08.shtml

http://www.beastiemania.com/qa/grandroyalrip.php

http://www.beastiemania.com/qa/grandroyal.php

http://news.cnet.com/2100-1017-248230.html

 

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