Last month, technology giant Apple announced its plan to repurpose a factory site near Phoenix with the intention of opening a new data center. Once the property of GT Advanced, Apple bought the factory in 2013 after the New Hampshire-based company declared bankruptcy. In addition, Apple is reportedly trying to help more than 600 former employees of the bankrupt company.
According to Associated Press reports, GT Advanced’s Arizona factory had previously manufactured sapphire glass: an incredibly strong and resistant material that works well in smartphone construction. Prior to the release of the iPhone 6, there was considerable speculation as to whether or not Apple’s newest smartphone would use the durable glass components for its touchscreen. Ultimately, Apple chose to use a different material, which placed considerable financial strain on sapphire glass manufacturers.
However, Apple’s forthcoming Apple Watch will make use of sapphire glass. Despite the demand, GT Advanced fell into insurmountable debt and will not be producing the material for the Apple Watch. GT Advanced claims, however, that Apple bears significant responsibility for the failure of the bankrupt company.
Bankruptcy Is a Reality for Companies in Almost Every Industry
While the full details of GT Advanced’s financial situation are still developing, the case should serve as a reminder that even when companies are delivering cutting-edge services, they can still fall into difficult financial circumstances. Although companies often close their doors after filing bankruptcy, many have the opportunity to stay in operation. For business owners, bankruptcy may seem like a frightening prospect, but in many cases, it creates a pathway to financial stability.
Often, individuals and business owners fall into debt for reasons outside their control. Financial markets are constantly changing and evolving. Competition and new technologies can instantly make a company’s products or services irrelevant. In these cases, business owners must take steps to maintain financial stability, and filing bankruptcy may be part of that process.
Bankruptcy Law in Phoenix, Ariz.
Whether you are a business owner or an individual, if you would like to speak with an experienced Phoenix bankruptcy lawyer, contact Arizona Bankruptcy Attorneys today. To learn more or to schedule a free consultation, call us at 602-468-3328.