Why Bankruptcy Isn't a Brand Killer

The long-lasting value of branding can be seen in the news. Maureen Farrell (@maureenmfarrell) of CNNMoney (@CNNMoneyMarkets) writes that “neither bankruptcy nor a liquidation can kill iconic brands.”

Before the ink was even dry on Hostess Brands' bankruptcy filing, interested buyers were already digging into the potential value of the Hostess name and [its brands]....

Should Hostess Brands choose to liquidate rather than reorganize, the brand names - Twinkies, Ding Dongs and Wonder Bread - will very likely live on.

Buyers have made multi-million dollar bets on brand names like Polaroid, Sharper Image, and even Borders that continue to resonate with consumers even after the parent company has liquidated.

“The marketplace has, without question, become a lot more sophisticated in terms of intellectual property since the world came to an end in the fourth quarter of 2008,” said Jason Frank, a managing director in Hilco's appraisal business which values liquidated brands. “Before that everyone knew brand names were worth something but no one put much value on it.”

....Many potential buyers are also weighing the value of Kodak's brand-name since there's been a lot of talk that it may consider filing for bankruptcy. For now the company plans to restructure out of court.

....even brands with significantly less cache like Borders can attract eight-figure investments. Barnes & Noble spent $13.9 million to buy the rights to its defunct rival’s brand name....

Read this in full.

Contact Somersault (@smrsault) and let us help you plan your brand strategy.

And be sure to bookmark and use daily the SomersaultNOW online dashboard; especially the Branding tab.