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Airline magazine file for bankruptcy protection

In order to be successful, businesses need to turn a profit. In some cases, businesses are profitable because they fill a void in a specific niche market. For these businesses, they thrive because they are doing something that no other businesses has been capable of doing. However, when other businesses move into the niche, it can be harder for the original business to compete.

This seems to be the case with the once popular airline magazine SkyMall. The magazine use to entertain passengers of major airlines as they flew to and from their destinations. Featuring unusual and specialty items, SkyMall provided a service to a completely captive audience. However, as technology has changed SkyMall has lost business. Airline passengers are now able to use certain electronic devices while flying and airlines often provide personal televisions.

This has spelled trouble for the magazine and has led to the company filing for Chapter 11 bankruptcy. According to the magazine's parent company, the business has between $10 million and $50 million in debt. However, it only has between $1 million and $10 million in assets. These liabilities include debts to many major airlines, to UPS and to American Express.

Since the filing, the catalog business has been suspended. The company has also announced that it is willing to find a buyer for the business and hopes a sale will be finalized by April. The company has also had to lay-off 47 employees. Creditors say they are willing to liquidate the company's assets if a sale is not completed.

A business bankruptcy, like this one, does not have to be the end of a business. With the right help, Chapter 11 bankruptcy can provide some breathing room for a business to reorganize and emerge stronger than ever.

Source: News 9&10, "Garden gnome fans fret: SkyMall files for bankruptcy," Scott Mayerowitz, Jan. 23, 2015

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