Companies That Bounced Back After Bankruptcy

Marvel Entertainment filed for bankruptcy in 1996, citing declining comic book sales. After merging with Toy Biz and selling film rights to characters like Spider-Man and the Fantastic Four, the company managed to regain its footing.

Disney purchased Marvel for $4 billion in 2009, and its Avengers franchise has become a cash cow for the House of Mouse.

Faced with rising debts and a falling stock price, Converse filed for Chapter 11 bankruptcy in 2001. Sold at auction, Converse’s new owners tapped a former North Face executive to revive the brand, eventually selling to Nike for $1.9 billion in 2003.

Delta exited bankruptcy in 2007 after cutting 6,000 jobs and reducing labor costs by $1 billion. By maximizing use of its Atlanta hub, expanding its international reach, and cutting costs, the company bounced back.

Six Flags eliminated $1 billion in debt in 2010 by offering bondholders ownership of the company. The amusement park chain went on to post nine straight years of record revenue, and in 2024, the company merged with former rival Cedar Fair.

Hostess filed for bankruptcy protection in 2012, and it seemed like the end of Twinkies, Ho Hos, and Ring Dings.

The company was bought by a private equity firm in 2015, which invested $375 million in the company, took it public, and reduced costs, bringing the classic Americana pieces back to store shelves.

The comeback captured the attention of J.M. Smucker Co., which completed an acquisition in 2023.

American Airlines filed for bankruptcy in 2011 and spent the next several years reducing its workforce and restructuring its business. After merging with US Airways, the company returned to profitability in 2014 and has largely managed to stay in the black, aside from during the COVID-19 pandemic.

When GM filed for bankruptcy in 2009, the US government spent $50 billion to bail it out and save autoworkers’ jobs. The Treasury Department said in 2013 that the moves ultimately lost about $11.2 billion, but that the alternative would have been much worse.

The lifeline for GM helped the company transform into one of the world’s best-run car companies and has contributed to the revitalization of Detroit.

Betsey Johnson had planned a massive expansion during the 2008 financial crisis. Instead, the company ended up $4 million in debt.

After filing for bankruptcy, the brand was acquired by Steve Madden in 2010, and Johnson has since revamped her fashion line to focus on lower-priced items to be sold in department stores.

Chicken-wing and skimpy-uniform restaurant chain Hooters filed for Chapter 11 protection in March and emerged several months later under a deal with the company’s original founders to “re-Hooterize” the brand.

Texas-based housewares chain At Home filed for Chapter 11 protection in June and emerged in October with $2 billion less in debt, $500 million in exit financing, and a new ownership agreement among a group of its lenders.

CEO Brad Weston said the chapter now represents “an exciting new beginning.”