The following is a list of major company shutdowns due to inappropriate behaviour and questionable actions. Raise your hand if you recognize one or two.
1. British Satellite Broadcasting
BSB (NOT the Backstreet Boys) was a British television program that provided broadcast satellite services in the United Kingdom. It was established in 1986, and by 1990, was broadcast on television. Its five channels were:
• The Movie Channel
• The Sports Channel
• Galaxy
• The Power Station
• Now
But BSB were facing some troubles as competition was high, and prices grew dramatically for film rights. Sometime after its debut, BSB, along with another satellite company called Sky, was struggling while facing great deals of losses. In November 1990, it was announced that Sky and BSB would join forces to become one company. They would change their name to British Sky Broadcasting (BSkyB), but marketed as Sky. With the new set, more channels for viewers were established, but the new implementation did not seem to help at all as now there is no such company as British Satellite Broadcasting.
2. Drexel Burnham Lambert
DBL was a Wall Street Investment firm which made its debut in 1933. It was considered to be the most successful firm of its time, being the fifth largest investment bank in the United States. However, things changed when DBL went bankrupt. Not only that, but a former DBL executive, Dan Stone, had stated that the bank’s aggressive culture created much dismay employees’ behavior, leading them to make unethical and illegal decisions and put them into action. For two years, DBL denied any wrongdoing, but by 1990, the bank was no longer. Instead, a new investment company called New Street Capital, has taken into place. It is a small investment group that holds 20 employees, founded in 1992.
3. Café Feugo
Café Feugo was a Cuban restaurant established by the then boyfriend of Oscar Winning actress, Halle Berry, in 2006. His name is Gabriel Aubry,. Aubry opened the restaurant out of love for Cuban food, and got his ideas for the food to provide in the restaurant from making research from all around the world. Of the environment of the restaurant, Aubry said that it is has a cozy and inviting ambience. Café Feugo got rave reviews from customers, but closed only two years after its debut.
4. Aloha Airlines
Aloha Airlines was a well established company that opened its run in 1946. It took passengers through the Hawaiian Islands, and was known as “The People Airline.” Unfortunately, the big success of Aloha Airlines was cut short due to bankruptcy. Rising costs and economic retractions in Japan, as well as the emergence of go! Airlines, proved to be difficult for Aloha. Their last flight took place on March 31, 2008. Those who were recurring customers of Aloha were sad and angry of the move. One passenger said: “[Aloha’s closing] is really sad for me. I always fly Aloha…it sounds a little strange, but I feel like they’re part of my family and now they’re gone just like that.”
5. Music Zone
Music Zone was a music retailer company in the United Kingdom, formed in 1984 by Russ Grainger. It was one of the most successful music companies, being the third largest ever. But 2007 proved to be a difficult year for Music Zone. Being the most successful does not mean the company will survive. Despite the much hard work and initiative from business management, Accountancy firm Deloitte was appointed administrator after the firm failed to find a new buyer. Music Zone saw a layoff of 1,100 employees when it shut down.
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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