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

iHeartMedia, the largest network of terrestrial radio stations in the United States, is set to file for bankruptcy soon. Currently, the company is about $20 billion in debt. According to insiders, advisors for the company's senior creditors have seen the documents that will be used on the first day of the company's bankruptcy proceeding.

Although it can seem sudden, iHeartMedia has actually been in talks with its creditors for months about how to handle its massive debt. The bankruptcy is coming after the media company has been repeatedly unable to work out a manageable way to handle its debt with its largest creditor group and determine how to divide the equity in its radio business with junior debt holders.

Missed Payments Lead to Bankruptcy

In 2000, Pete and Gerry's Organic Eggs was on the verge of financial collapse and considering filing for bankruptcy. Then, recent college graduate Jesse Laflamme, grandson of one of the company's original founders, stepped in and made changes that transformed the egg producer into what it is today - a flourishing company that partners with 125 family farms in 14 states to produce high quality, organic eggs. In 2017, Pete and Gerry's Organic Eggs earned $177 million in revenue, up from a few hundred thousand dollars at the end of the 1990s.

Changing Methods to Suit Today's Consumers

Today's consumers, particularly younger consumers, are more health-conscious than consumers of earlier generations. Similarly, they place a greater emphasis on sustainability in the production of the products they buy. Knowing this, Pete and Gerry's chose to make their operation completely organic instead of adopting the factory-farming practices used by other egg producers to scale their operations to meet supermarket demands. When the company made the conscious choice to make its operation organic, the market for organic eggs in the United States was very slim. Today, that market is much larger and Pete and Gerry's is now the #2 egg brand in the nation.

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

Over the past decade, gift cards have become a popular holiday present. Giving gift cards is easy – they are small, so there is not much wrapping required, and because they permit the recipient to purchase whatever he or she likes from the retailer, they eliminate the pressure to choose a gift the recipient will like.

Gift cards do have a few disadvantages, though. One of these is that their retailers can file for bankruptcy and go out of business, leaving the recipient with a useless gift card. As more and more retailers file for bankruptcy, such as Toys R Us and Charming Charlie, it is important the gift card purchasers and recipients know what to do with gift cards for these retailers.