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OxyContin Manufacturer Considering Bankruptcy

The maker of OxyContin, Purdue Pharma, says they are considering filing for bankruptcy to protect them from more than 1,000 lawsuits and the potential liability that could come from them. The company recently hired two restructuring advisors, and although the company has no significant debt, lawsuits against the company could be halted by filing for Chapter 11 bankruptcy. The claims against the company would be decided by the bankruptcy court if they file.

Purdue Pharma is currently facing lawsuits from a variety of cities, counties, and states for their role in the opioid epidemic. The claims allege that the company contributed to the epidemic through their sales and marketing efforts. One of the claims in Massachusetts states the company deceived doctors and patients regarding the risks of the drugs.

Purdue Pharma's Response

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Business Bankruptcy: A Giant Falls

The new millennia has not been kind to major retail outlets. One by one, giants like Toys “R” Us, Subway, Teavana, and Rite Aid closed hundreds of stores across the United States in 2018. Online megastores like Amazon and EBay have faced off with their competitors, titanic stores locked in mortal combat like King Kong and Godzilla, and basically obliterated them.

This is not the first time we have seen Goliath fall in recent years. In 2011 Blockbuster Inc., folded its company as Netflix brought down their final, lethal stroke. For decades Blockbuster had a monopoly on the movie rental market, but they could not keep up with the changing technology. In 2000, Netflix's CEO Reed Hastings approached Blockbuster's CEO, John Antico and offered the then-reigning entertainment monarch the chance to buy the new company for just $50 million dollars (which was then only a DVD mailing service as streaming had not taken off yet). Antico was not convinced that Netflix's business would survive, and so he passed on the deal. The rest, as some say, is history.

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What am I Obligated to Tell Employees About Upcoming Bankruptcy?

When a company faces financial difficulties, bankruptcy can be a way to recover. If restructuring and becoming profitable again is the goal, Chapter 11 is the answer. When becoming profitable again is not feasible, a business owner may opt to file for Chapter 7 bankruptcy instead.

As a manager or business owner facing bankruptcy, it can be difficult to determine the best way to tell your workforce about it. Do not avoid the topic or let rumors develop. As a leader in your company, it is your responsibility to be realistic with employees and tell them the truth about the changes that are coming to the company, whether they will involve a restructuring, downsizing, merging with another company, or going out of business.

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Remington Outdoor Company Plans to File for Bankruptcy Amid Declining Sales

Remington Outdoor Company, a 200-year-old American firearms manufacturer, announced its plan to file for bankruptcy in February of 2018. In doing so, it joined other American firearms manufacturers and distributors in publicly announcing its financial distress in today's polarized political climate.

Mass shootings, like the one that occurred in a Florida high school on February 14, 2018, generate discussions among Americans about the right to own guns and the right way to screen prospective gun purchasers. During the Obama administration, gun sales tended to rise after mass shootings due to citizens' worries that new federal regulations on gun ownership would be passed. Since President Trump took office, this has not been the case. The lack of reactionary gun purchases is partly the cause of Remington's financial distress that drove it to bankruptcy.

Remington is Not the Only Firearm Company Facing Financial Difficulty

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American Apparel is Preparing to File for Bankruptcy for the Second Time in Two Years

American Apparel Inc., a casual clothing brand known for the domestic production of its products, is preparing to file for bankruptcy protection. This would be the second time the company filed for bankruptcy in two years. Its most recent bankruptcy was filed in October 2015 and by February 2016, the company emerged under new ownership by Monarch Alternative Capital. With this new leadership, the company refocused on its basic items and sought restructuring guidance from Berkeley Research Group.

These changes could not save the company's bottom line, though, and again the company is looking to restructure itself through bankruptcy. With American Apparel, like many other poorly performing companies, there is not just one issue hurting profits. American Apparel is competing in a crowded, changing sphere of the market while attempting to tackle its internal problems, such as the dismissal of its CEO following a misconduct scandal in 2014.

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