Why did Fruit of the Loom go bankrupted before being bought? - ProProfs Discuss
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Why did Fruit of the Loom go bankrupted before being bought?

Asked by Kendrell, Last updated: Oct 29, 2017

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b.Oliviasi

b.Oliviasi

b.Oliviasi
B.Oliviasi

Answered Oct 27, 2017

Fruit of the loom is an American clothing company that specializes mainly in underwear. The company’s headquarters is in Bowling Green Kentucky. In 1999 Fruit of the Loom filed chapter 11 bankruptcy. There seems to be varied reasons for the bankruptcy but one of those reasons was a large loss the company suffered. 66 million shares of outstanding common stock dropped from being worth about 44 dollars a piece in 1997 to only 1 dollar a piece in 2000.

It has also been said that the owner of the company lost a lot of money due to massive debt including unprotected business ventures. Among these were a ploy to structure the company into an offshore venture in the Cayman Islands to avoid paying taxes.

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