How many FTSE 100 companies have ever gone bankrupt?

switch76

Just wondered how likely it is. Can someone tell me if its happened and some details about it?

alanq

An example that has been in the news recently is Polly Peck.
http://en.wikipedia.org/wiki/Polly_Peck

Also British & Commonwealth Shipping, Ferranti and MFI Furniture
http://www.fool.co.uk/news/investing/investing-strategy/2009/05/27/25-years-of-the-ftse-100.aspx

There are probably others.

opinions4u

The likes of Woolworths and Marconi may have been in the FTSE100 when they went, or they may have slipped out while teetering on the brink.

It would be interesting to look at the FTSE100 20 years ago and compare it to today.

There won't be much left with the failures, mergers and takeovers that have taken place!

turbobob

http://en.wikipedia.org/wiki/FTSE_100_Index gives some examples at the end of the article of former members. Includes Bradford & Bingley (shareholders got nothing), Maxwell Communication Corporation (collapsed), Railtrack (nationalised?)

mike88

A few banks would have gone under had they not been bailed out.

LongTermLurker

A big chunk of those in 1999-2000 when it was realised that companies heavily in debt, despite being popular and having vision, didn't have the ability to deliver.

Ironically, it was clear at the time that the Internet and technology was the future and would take over and define how we lived our lives. 10 years on it's been proven right. The companies in question were in the right place at the wrong time but were raised to unsustainable levels too quickly.

alanq

opinions4u wrote: »

It would be interesting to look at the FTSE100 20 years ago and compare it to today.

The link that I posted early shows the fates of the first FTSE 100 companies 25 years later in 2009.
http://www.fool.co.uk/news/investing/investing-strategy/2009/05/27/25-years-of-the-ftse-100.aspx

switch76

If you own shares in a company that goes bankrupt do you get anything back?

opinions4u

switch76 wrote: »

If you own shares in a company that goes bankrupt do you get anything back?

Very simple answer. No.

Theoretically, if there's any money left after all the debts have been paid, that is distributed between shareholders. In reality, after adminstrators and lawyers have charged their fees there isn't going to be anything left over!

sabretoothtigger

Thats what shorting is about and options. People who buy millions in shares tend to also buy insurance on it which is roughly called a futures option I think

When you get some numpty on tv saying short sellers caused the crash they are trying to argue insurance causes accidents to happen.
Of course theres always 1 dodgy deal going on but in the main its there for good reasons

Also a company can claim against its losses including share investments so they would sort of get something back in accounting for less profit tax. The big players always have an advantage over private investors


B&B I think will make a profit for the government in the end so long as they dont get dragged down by usa debt they were buying right up to the end. Shareholders dont get that because they failed to fund it in the meantime so its tough luck, they'd be nothing to share if not for government.
In the end if it pays a profit it'll mean less income taxes, same for Lloyds and RBS if they work we are all like 50 quid better off a year