This is the Web site of law firm Dewey & LeBoeuf. It features a video stream of aerial shots of really expensive-looking buildings. Impressed by the site? Of course you are. This may be the extent of how impressed you are with the company, which used to have offices around the world and at its peak employed 2,500 people and roughly 1,400 lawyers. Today, the firm, with roots back to 1909 and partly named for Thomas E. “Truman Defeats” Dewey, filed for Chapter 11 bankruptcy protection, with the intention of winding down. Why’s that? After the merger which gave it its current name, it grew too fast and was saddled by debt. Now hundreds of lawyers are out of work, like that.
» Quick thought on the matter: Anyone see shades of AT&T and Verizon in this whole mess, in that (like AA) both companies sold unlimited service for something — in this case, mobile data access — only to change their minds after they decided it was costing too much, in the process treating their customers like jerks? The lesson: Unlimited has limits, apparently.
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Kodak files for Chapter 11 bankruptcy | The Verge
Patent lawsuits won’t save Kodak from an overhaul, it seems: as predicted, the photography company just announced that it’s filed for bankruptcy. Kodak says it’s voluntarily filed for Chapter 11 reorganization in New York, in order to “bolster liquidity in the U.S. and abroad, monetize non-strategic intellectual property, fairly resolve legacy liabilities, and enable the Company to focus on its most valuable business lines.”
Having recently purchased a Kodak product and seeing how awful the user experience was, this is the opposite of surprising. Still sad though.
TRUTH
Glad to see Hostess can stay so optimistic considering the day’s news. The reason they’re going bankrupt probably involves too many snack parties.
Too many employees, too much debt: Hostess, the company that makes Twinkies, HoHos, Ding Dongs, Zingers and other amusingly-named foods (including Wonder bread), says that it has too many legacy payments. With 12 unions making up 83 percent of its 19,000 employees, the company says it ”is not competitive, primarily due to legacy pension and medical benefit obligations and restrictive work rules.” The company, which is still negotiating with its unions, will stay in business thanks to $75 million in financing from lenders. (photo by Like_the_Grand_Canyon on Flickr) source
The end of an era: According to sources reported by The Wall Street Journal, the Eastman Kodak company sits on the verge of Chapter 11 bankruptcy, and is expected to file within the next couple weeks. Once a colossus in the world of film, advancements in digital technology inevitably hurt the company’s profits, straining an outdated business model; they’ve failed to turn a profit five of the last six years. Kodak employs about 19,000 people, and has heavy responsibilities to retirees — this is certainly not what the private sector job market needs right now. (Photo courtesy of alf sigaro) source
They were the only major airline to avoid bankruptcy in the past decade: In 2003, American Airlines parent AMR, which also operates the American Eagle airline, managed to stave off bankruptcy by scoring an agreement from its unions. The country’s third-largest airline, however, wasn’t able to get past it this time around. With the company’s stocks in freefall (down 45 percent since September) and a recent wave of pilot retirements playing harbinger, it seemed like signs were pointing towards bankruptcy. Here’s what their financials look like, according to their Chapter 11 filing, which they submitted to a New York court today:
» What this means for consumers: The company says it plans to honor its reservations, keep its normal schedules, continue its frequent-flyer program, maintain its Admirals Club lounges and pay employees their normal wages and health benefits. So outwardly, there should be no obvious signs that the company is trying to reorganize itself. (photo by Clara S. on Flickr)
» Sign of the times: In its Chapter 11 bankruptcy, the famed chain of bookstores will be forced to close 30 percent of its 600 stores, having been left somewhat behind by the changing nature of the book world (damn you, internet). Many analysts feel a tad downtrodden by the news. “This is the biggest bankruptcy in the history of the book business,” said Albert Greco, senior researcher at the Institute for Publishing Research. “This is really a depressing day.”
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