Crocs Shoe and Phoenix Coyotes in Big Trouble
The United States recession is far from over as two renowned brand are in danger of collapse along with dozen others. Phoenix Coyotes hockey team company had already filed for Chapter 11 bankruptcy protection with up to $500 million in debts and less than $100 million in assets.Meanwhile Crocs, the trendy shoe company swung from a profit of $168.2 million in fiscal year 2007 to a loss of $185.1 million last year. In its annual report, Crocs said that an independent auditor expressed concerns about "conditions that raise substantial doubt about our ability to continue." Its stock price has plummeted 76 percent. (see related news)
The colorful foam clogs appeared in 2002, just as the country was recovering from a recession. Brash and bright, they were a cheap investment (about $30) that felt good and promised to last forever. Former president George W. Bush wore them. Aerosmith lead singer Steven Tyler wore them. Your grandma wore them. They roared along with the economy, mocked by the fashion world but selling 100 million pairs in seven years.
That's not all several other companies including President Barack Obama's suit maker is also under terrible fire. Hartmarx, the Chicago-based clothing maker declared bankruptcy in January, just after the president wore its suits for his inauguration and election night attire. The company listed between $100 million and $500 million in assets and liabilities, and noted in its filing a "substantial decline in discretionary apparel purchases by consumers and by the company's retail customers."
Other companies that have already declared bankruptcy are:
Six Flags. The New York City-based amusement-park operator went belly-up in June, unable to spin off $2.4 billion in debt -- even on the Tilt-A-Whirl.
Crabtree & Evelyn, a fancy soap maker also filed for Chapter 11 bankruptcy protection in July with between $10 million and $50 million in assets -- and just as much in debts.
Filene's Basement, bargain basement filed for bankruptcy protection in May with assets of up to $100 million and liabilities of as much as five times that amount.
Extended Stay, the famous hotel chain filed for Chapter 11 in June, buckling under a debt load totaling $7.6 billion at the end of 2008, according to court documents. It claimed between $100 million and $500 million in assets, but just as much in liabilities.
Eddie Bauer, the Washington-based clothing retailer, which is known for its mom jeans and rugged outdoor gear, filed for Chapter 11 bankruptcy protection in June.
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