Why Do Bankrupt Companies Keep Running?

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As you may have figured out by now, we love to talk about dead or struggling companies, which usually end up bankrupt. Just in the retail sector last year, Century 21, Brooks Brothers, JCPenney, GNC, JCrew, Guitar Center and a bunch of others all filed for bankruptcy and filled the news headlines.

But, somehow, if you go to your local mall today, you may find bankrupt stores up and running. So what gives? Is it a capitalist instrument to keep the economy going? Maybe something more like that.


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