The proverbial saying goes, “When life gives you lemons, make lemonade.” Among all kinds of human pursuit, the business landscape produces the sourest of failures.
Entrepreneurs are aware of the scary truth: that the only constant thing is change, and no trend forecast could ever ensure a company’s health. As the world further embraces technology, companies should learn to adopt new trends of Internet marketing. For some companies, it is harder to keep up.
When a company continuously deteriorates, filing for bankruptcy seems to be the only option.
Yet bankruptcy is not the last option. There is a way to get back. After tasting sour failure, these companies were able to make a refreshing return.
Apple
Everyone has heard of Steve Jobs’ empire. He’s become a household name. It’s almost inconceivable to think that Jobs’ company was on the verge of bankruptcy in 1997.
Jobs conceived of the brand name in the 1970s. Then the company officially went public in 1980, though it wasn’t a steady start. The Macintosh lost against IBM’s computer four years later. Jobs was ousted from the company he made. He started a new company, NeXT, but this was also eventually bought by Apple.
Back to being the Apple CEO, Jobs had the task of saving the company from bankruptcy. While it was hard for Jobs to find support among the crowd, he eventually found one where it matters: in the competition itself. Jobs called Bill Gates, who bought $150 million non-voting shares of Apple Computer. Steve Jobs, by then, formed the foundation for a brotherly competition, which continues to be an interesting tech tidbit.
While they are mainly seen as competitors, Apple and Microsoft both shaped the tech industry, each creating a following and market of their own.
Marvel
The Big Bang Theory normalized the culture of “geeks” and “nerds,” comic fanatics who comprise Marvel Studios’ biggest market. As long as a Marvel movie is showing, cinemas are sure to make a profit. But the success didn’t happen overnight.
The history of Marvel is a lengthy chronicle. Marvel Comics officially made a name when Stan Lee made The Fantastic Four. Before that, founder Martin Goodman had his magazines published by different corporations.
After the war, superheroes became out of fashion. Debts piled up for Marvel, and on December 27, 1996, they filed for bankruptcy.
The liquidated assets allowed them to pay the creditors, but time was ticking. They had to make money fast. This led to a merger with Toy Biz in 1997. Then bigger money came from film rights, which Marvel auctioned off to the studio giants. The Fantastic Four, for instance, went to 21st Century Fox, while Spider-Man went to Sony Pictures. The quick cash saved Marvel Studios so it can be what it is today.
Kodak
Before the age of selfies, pictures took time to develop. The Eastman Kodak Company, or simply, Kodak, made a profit through products for analog photography.
It had a promising start. Founder George Eastman came up with a unique and snappy name after playing around with anagrams. The company sold inexpensive cameras but made huge money through accessories and consumables. They even had their own Kodak camera, released in 1888.
Then Japanese brand Fujifilm entered the American market. Eastman didn’t think much of the competition. Their passivity paled next to Fujifilm’s aggressive marketing.
By the 2000s, people no longer wanted to wait for photos to develop. Both Fujifilm and Kodak were in danger of going out of business. Fujifilm was able to successfully digitize their products, unlike Kodak.
In 2012, Kodak finally filed for bankruptcy. Under Chapter 11 of the United States Bankruptcy Code, Kodak obtained $950 million and an 18-month credit facility to continue operations. The Chapter also mandated them to create a reorganization plan under a deadline, which they could do.
A year later, Kodak went public again, but with a different face. They reinvented themselves as a technology company focused on supporting businesses.
The company hasn’t been able to gain back its former glory. But it recently made news after former president Donald Trump tapped it to produce pharmaceutical ingredients. They are to receive $765 million to create a new division, to be called Kodak Pharmaceuticals. The sub-brand is poised to produce 25% of the ingredients for American medicines. Surely, no one has predicted that America’s once-beloved photography brand would become the government’s pharmaceutical producer.
Knowing You’ve Got Enough Lemons to Make Lemonade
In every business venture, it is common to experience a few setbacks. But when it’s all the company’s been getting, maybe bankruptcy could give the team a better chance at survival.