Trump Casino, US Airways and Circuit City: Experiences with Bankruptcy
By: Christina Dove
During this economic crisis, there are several companies that are struggling to stay afloat and maintain open for business. However, there are also some companies that cannot survive the blow to the economy and are forced to file for bankruptcy. One of these companies is the Donald Trump Casinos. Donald Trump has had to file for bankruptcy three times, and this past time in February, he was forced to sell the business. There were not enough people coming to the casinos and staying in his hotels and condos to keep the Trump business flourishing. However, Trump tells FOX News that he has several other projects in Washington and New Jersey that he is working on and will still be making profit other ways.
Another company that is having difficulty in the economic crisis is US Airways. They have filed for bankruptcy and are in the process of devising a new business plan to reorganize the business. However, if this plan does not work out, then they will be forced to liquidate the business. A huge challenge for US Airways is that during an economic downturn, many people are not flying and trying to save money, putting a heavier burden on US Airways to try and get back on track.
Finally, Circuit City has been one of the most recent major companies to file for bankruptcy. Some people think their downturn began ten years ago with their technology the DVX, which tried to compete with the DVD and failed miserably, costing the company a lot of money. In addition, in 2007 just before the economy went bad, Circuit City laid off many of their highest paid and best employees, which put them behind in customer service and allowed companies like Best Buy to reel in more customers.
http://www.legalzoom.com/legal-articles/donald-trump-casino-bankruptcy.html
http://www.consumeraffairs.com/news04/usair_bankruptcy.html
http://www.teleread.org/2009/01/17/lessons-from-circuit-citys-bankruptcy/
No comments:
Post a Comment