Establishing a company and maintaining a business is not that easy. It has become a global custom to earn a lot and hoard the money. This has become a global nuisance to hoard all the wealth for no use. It has become a culture across the world that companies do not survive for a longer period now. According to data from the US Bureau of Labor Statistics, a fifth of global business, or to be more precise, 20% of all businesses fail within the first couple of years after their establishment. The situation does not improve during next year either as 45% of global business collapse after five years. Furthermore, 65% do not survive even after passage of 10 years. After 15 years, only 15% businesses survive. It is a harsh reality that makes us realize that for starting a business, we do not only need capital, instead we also need to consider the amount of time and effort we need to invest to make the business up and running. In this article we have gathered a lot of interesting information for our readers. This article provides information about Top 10 Bankrupt Companies as shared by Insider Monkey.
One of the bankrupt companies is Worldcom with total assets of $103.90 billion at the time it got bankrupt. The company got bankrupt on July 21, 2002. After AT&T, Worldcom turned out to be the second biggest telecom company in the US. The company got trapped in an accounting scandal in 2002. In this scandal, the loss of the company’s earnings was hidden. This led to complete devastation and destruction of the company. Another company that went bankrupt is Washington Mutual. The total assets of the company at the time it got bankrupt were $327.90 billion and it was declared defaulter on September 26, 2008. Washington Mutual was a savings bank holding company. It was one of the biggest savings and loan association companies across the US. The saga of the company’s default started from its subprime mortgage crisis. The company lost stock value in this crisis which resulted in loss of confidence of its customers. The Federal Deposit Insurance Corporation seized assets of the company and was later sold to JP Morgan Chase. We have discussed only two companies in this article that went bankrupt. You can read about other companies in this article 15 Biggest Companies That Went Bankrupt.