Going Out of Business: Its Changing Image
Bankruptcy — once considered the lot of the financially irresponsible or unfortunate — no longer seems to carry the stigma of personal dishonor it has in the past. Both business and personal bankruptcies are on the rise, and while filing for bankruptcy is still generally an act of last resort, it has become an effective business strategy for some corporations and individuals. Witness Continental Airlines, which, after filing for bankruptcy last September, announced it was no longer honoring collective bargaining agreements with the company's unions. Shortly thereafter, equally solvent Eastern Airlines threatened to follow Continental's example until it reached a compromise with some of its employees over labor concessions. A year before, Manville Corp., the giant asbestos ...