Hey Girls! Most of you have probably at some point in your life played the board game Monopoly. When you’re playing Monopoly, you use fake money and once you run out and can’t mortgage any more properties, you are completely in debt and have to file for bankruptcy. That’s it, the game is over. But in real life for corporations, filing for bankruptcy doesn’t always mean the absolute end of a business, but in fact can help a business to start fresh.
Of course, nobody wants to file for bankruptcy. Like in Monopoly, it’s admitting that you lost and big businesses tend to be pretty sore losers. Recently, two major car companies—Chrysler and GM—had to declare bankruptcy. Clearly, this isn’t an ideal situation: they’re both losing a ton of money and many people who work at their dealerships will probably lose their jobs once the dealerships begin to close down. The companies on the whole, though, don’t have to immediately call it quits. They can start over. GM, for instance, is taking a whole new approach to its advertising by recognizing that it has made mistakes, but is now dedicated to starting over and reinventing its image. They told their customers that clearly no company wants to go through this, but that this isn’t the end of the American car, but the beginning of its new image. Hopefully both of these major car companies will be able to come back stronger than ever!
Just like Monopoly, you never want to lose the game. But when you do have to declare bankruptcy, that doesn’t mean you can never play again. You learn from the mistakes you made the last time you played, think up a new strategy, and start a fresh new game.