Several months ago I promised to keep tabs on notable bankruptcies of 2008 (see More Failure for Fodder). Well, we’re nearly half-way through the calendar year, so I thought I’d continue to make good on that promise.
Below you can find a list of what I see as the “noteworthy” bankruptcies of 2008 (please note that this is not an exhaustive list):
- Aloha Airlines (airline)
- ATA (airline)
- Bear Stearns (banking)****
- Blue Water Holdings (auto)
- Buffets Holdings (restaurants)
- Education Resource Institute (insurance)
- Empire Land (real estate)
- Eos Airlines (airline)
- Fashion House Holdings (retail)
- Fortunoff (retail)
- Friedman’s Jewelers (retail)
- Fred Leighton Holdings (retail)
- Frontier Airlines (airline)
- Goody’s (retail)
- Legends Gaming (casino)
- Lillian Vernon (retail)
- Linens n’ Things (retail)
- Kimball Hill (real estate)
- Landsource Community Development (real estate)
- Matrix Development Corporation (real estate)
- PRC LLC (business services consulting)
- Propext (textiles)
- Quebecor World (USA), Inc. (office services/printing)
- Red Envelope (retail)
- Sharper Image (retail)
- Silverjet Airlines (airline)
- Sirva (moving services)
- Skybus (airline)
- Steakhouse Partners (restaurants)
- Tropicana (casinos)
- Wickes Furniture (retail)
- Vicorp (restaurants)
- Ziff Davis (media)
One thing that is clear about these 33 high-profile bankruptcies is that they have occurred in industries that are close to the struggling consumer. That is no surprise. But from here, I would expect bankruptcies to become more broad-based as this recession spills over to the broader economy.
From the previous recession, there were 289 total bankruptcies in 2000 and 383 in 2001 according to Bankruptcydata.com, …far more than this year’s projected 180 (if current numbers persist). I fully expect us to exceed 180 by year’s end. I do not expect us to reach 289 this year. My current estimate for 2008 calls for about 225 bankruptcies. However, I would not be surprised to see 2009 challenge the 383 mark from 2001.
In addition to the bankruptcies of 2008, I came across some interesting statistics from the Bankruptcy Insider (at the deal.com). The Bankruptcy Insider documents 475 cases of corporate distress since Jan. 1, 2008 (compared with 753 cases of distress for all of 2007). Cases of distress can provide a forward-looking estimate of bankruptcy.
So this is the state of the 2008 bankruptcy scorecard so far. Unfortunately, there’s likely many more to come.
