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    Nikola, Electric Truck Maker, Files for Bankruptcy

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    The company, which once enjoyed a surging stock price, struggled to turn its plans for electric and hydrogen trucks into a viable business.Nikola, an electric vehicle start-up that had once hoped to become the Tesla of heavy trucks, filed for bankruptcy protection on Wednesday.Founded in 2015, Nikola promised to develop long-haul semi trucks powered by hydrogen and electricity, and listed itself on the stock exchange in 2020 before it had sold a single vehicle. Its share price surged briefly as individual investors and some Wall Street firms clamored to bet on companies that they thought could replicate Tesla’s success and its soaring stock price.Investors’ short-lived enthusiasm for Nikola made its founder, Trevor Milton, and other early investors wealthy. But before long, significant doubts emerged about Mr. Milton’s claims about the company’s technology and orders from customers. He was soon ousted, and later convicted on fraud charges.In recent quarters, Nikola had begun delivering small numbers of electric trucks but far too few to make money. Late last year, the company said it had $200 million in cash and $270 million in long-term debt. Its stock plunged in early February on reports that the company was nearing a bankruptcy filing.The company said in a release it had about $47 million in cash on hand, and intended to continue “limited” service and support for trucks out on the road. The bankruptcy filing listed liabilities of between $1 billion and $10 billion, and put the number of creditors it owes at between 1,000 and 5,000.Nikola is one of several fledgling electric vehicle companies that have struggled to turn their ideas into actual cars and trucks.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Joann Customers React to Store Closings and Bankruptcy

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      For quilters, knitters and crafters, Joann, which expects to close more than half of its stores after filing for bankruptcy, has been a one-stop shop — and more.Crafters, quilters, knitters and makers across the country received bleak news on Wednesday when they learned that Joann, the arts-and-crafts retail giant, was preparing to close more than half of its stores in the wake of its latest bankruptcy filing — its second in less than a year.Possibly as early as this weekend, pending court approval, the company will begin closing 500 of its roughly 800 stores nationwide. To its loyal customer base, the news represented more than just the decline of a chain that sells yarn, art supplies, sewing machines and fabrics. It also symbolized the demise of a sanctuary for those who find joy in the therapeutic hobby of creation.Jen Clapp, a longtime quilter and former fiber optics salesperson who lives in Northern Kentucky, mourned the expected end of the Joann she had been visiting since she was a girl. Back then, it was known as Jo-Ann Fabrics.“My friends who don’t quilt have been texting me to ask, ‘I just heard what happened — are you OK?’” Ms. Clapp said. “And no, I’m not OK. I’m heartbroken. My grandmother took me to that Joann, and I still go to it. Back then it opened up my world to quilting, seeing a whole wall full of calico cotton, and it’s been my go-to Joann ever since.”“I’ve gone to the smaller boutique stores, and you might get higher-end fabrics at them, but nothing really has the same selection as a Joann,” she added. “What’s happening will hurt the quilting community because those smaller specialty stores are few and far between. You’ve got to travel to get to one, and not everyone can find them. But almost anybody can get to a Joann.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Joann, the Arts and Crafts Chain, Will Close 500 Stores Across U.S.

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      The announcement came one month after the company’s second bankruptcy filing in less than a year.Joann, the financially troubled arts-and-crafts retailer, announced Wednesday that it was preparing to close 500 of its 800 remaining stores after its latest bankruptcy filing.The announcement came one month after the eight-decade-old company filed for bankruptcy for the second time in less than a year, as consumers pull back on spending. If the District of Delaware Bankruptcy Court gives its approval, the company said in a statement that it would shut underperforming stores across the country, from New York to Alaska.“This was a very difficult decision to make, given the major impact we know it will have on our team members, our customers and all of the communities we serve,” the company said in an emailed statement.Joann, whose outlets were once called Jo-Ann Fabrics, is based in Hudson, Ohio. The chain has long sold art supplies, such as yarn, sewing machines, fabrics and other seasonal products. The company currently has stores in 49 states.In March 2024, Joann filed for bankruptcy to reduce debt, resulting in the publicly-traded company’s being taken into private ownership. That initial filing closed in August 2024.The retailer continued its downward spiral after a short-lived boost during the pandemic. The company said on Wednesday that it faced “significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, have forced us to take this step.”Going-out-of-business sales at stores could start as early as Saturday, according to a customer FAQ shared by the company.The retail chain is also seeking court authorization to stop accepting gift cards both online and in stores within the next two weeks. Joann has already stopped selling gift cards and no longer accepts them on its website. Returns will stop being accepted two weeks after the court’s approval of Joann’s restructuring plan, the company said.J. Edward Moreno More

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      Chi-Chi’s, Former Mexican Restaurant Chain, Plans a Comeback

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      The chain, which closed in 2004, is poised for a revival next year after the son of one of the founders reached a deal with Hormel Foods.Chi-Chi’s, the Mexican restaurant chain that closed 20 years ago, is poised for a revival next year after Michael McDermott, the son of one of the founders, announced a deal with Hormel Foods.Under the agreement with Hormel, which owns the brand’s trademarks, Mr. McDermott will be able to use the Chi-Chi’s name on newly opened restaurants in 2025.In a news release announcing the deal, Mr. McDermott said he had “fond memories” of growing up in Chi-Chi’s restaurants.He credited his father with instilling in him “the passion and determination to pursue my own career in the restaurant industry.”Mr. McDermott said in a statement on Friday that the new business venture was “in the early stages of planning by securing funding” but shared that the first two restaurants to open will be in Minnesota.He did not clarify where in Minnesota the sites would be or how many restaurants might ultimately be opened under the revival.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      The Onion Buys Alex Jones’s Infowars Out of Bankruptcy

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      The satirical news site planned to turn Infowars into a parody of itself, mocking “weird internet personalities” who peddle conspiracy theories and health supplements.The Onion, a satirical publication that skewers newsmakers and current events, said on Thursday that it had won a bankruptcy auction to acquire Infowars, a website founded and operated by the conspiracy theorist Alex Jones.The Onion said that the bid was sanctioned by the families of the victims of the mass shooting at Sandy Hook Elementary School, who in 2022 won a $1.4 billion defamation lawsuit against Mr. Jones and his company, Free Speech Systems.Everytown for Gun Safety, a nonprofit dedicated to ending gun violence that was founded in the aftermath of the Sandy Hook shooting, will advertise on a relaunched version of the site under The Onion.The publication plans to reintroduce Infowars in January as a parody of itself, mocking “weird internet personalities” like Mr. Jones who traffic in misinformation and health supplements, Ben Collins, the chief executive of The Onion’s parent company, Global Tetrahedron, said in an interview.Family members of the victims of the Sandy Hook shooting, which claimed the lives of 20 first graders and six educators, sued Mr. Jones in Connecticut Superior Court in 2018 after he spread the baseless claim that the rampage was a fabricated pretext for confiscating Americans’ firearms.The Onion declined to disclose the price it paid for Infowars and its assets, including its production studio and diet supplement business. Mr. Jones could not immediately be reached for comment, but he said on the social media platform X this week that he planned to continue producing his online program, “The Alex Jones Show,” until he was forced to stop.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      TGI Fridays Files for Chapter 11 Bankruptcy

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      The company filed for Chapter 11 bankruptcy protection on Saturday but said its restaurants would remain open while it works on a “restructuring process.”TGI Fridays Inc., the casual American dining chain that for more than half a century served customers happy-hour deals, hamburgers and comfort-food appetizers like mozzarella sticks and loaded potato skins, filed for bankruptcy protection on Saturday.The Dallas-based company filed for Chapter 11 bankruptcy in the Northern District of Texas to begin a “restructuring process” to ensure the “long-term viability of the brand,” according to a company statement.The move comes as the company struggles with financial challenges brought, in part, by the Covid-19 pandemic, Rohit Manocha, the executive chairman of TGI Fridays Inc., said in the statement.All 39 restaurants in the United States that the company owns and operates will remain open. Locations owned by 56 independent franchisees are not included in the bankruptcy filing, the company said.The company estimated both its assets and its liabilities are between $100 million and $500 million, according to court filings.TGI Fridays, which stands for Thank God It’s Friday, opened in 1965 in Manhattan. It became popular for creating an environment of flirtation at its happy hours, which catered to single people, and for its large portions.In 2007, the company changed its menu and began offering smaller portions for lower prices, a move that proved popular with customers.The pandemic, though, proved to be a challenge for restaurant chains like TGI Fridays that have large real estate footprints. The chain has more than 461 restaurants in 41 countries. Since the pandemic, customers’ appetites have shifted to faster, cheaper food.In October, Bloomberg reported that TGI Fridays Inc. was seeking financing to prepare for a potential bankruptcy filing.TGI Fridays, which dropped the apostrophe in its logo in 2013, is privately owned by TriArtisan Capital Advisors, a New York-based private equity firm. TriArtisan did not immediately respond on Saturday to an email seeking additional comment.The restaurant chain was a cultural touchstone of American casual dining for decades.Famous for its brightly colored beverages, TGI Fridays said its bartenders trained the actor Tom Cruise to make drinks for the 1988 film “Cocktail.” It also takes credit for having popularized the Long Island Iced Tea.Fridays, as the chain is sometimes called, is not the only casual sit-down restaurant chain that has struggled recently.Buca di Beppo, an Italian casual dining chain with more than 80 locations, many in California, filed for Chapter 11 bankruptcy in August. Red Lobster filed for bankruptcy in May and exited Chapter 11 bankruptcy protection in September, The Associated Press reported. More

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      F.D.I.C. Says Banks Need to Keep a Record of Their Fintech Customers

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      Banks holding customer funds for money management apps should keep track of customers’ identities and balances, the agency says.When a banking software company collapsed this spring, thousands of people keeping cash in online money management apps found themselves cut off from their own money for months. On Tuesday, the Federal Deposit Insurance Corporation proposed new rules designed to prevent that from happening again.Customers often choose to put money they would otherwise hold in a bank checking account into an online app. Some apps offer higher interest rates on deposits than traditional banks do, while others offer customers new saving and investing plans or small loans ahead of their paydays.But money that customers send to online financial companies almost always ends up in a brick-and-mortar bank — and sometimes it is pooled into a single account. Customers often do not know which bank has their money.Banks are under no obligation to keep track of the identity of fintech customers. The federal bank regulator’s proposal would require the banks to pay more attention.Traditional banks holding funds for fintech customers would have to know each person’s identity and keep daily tabs on their balances. They would have to make sure that, no matter what happened to the other companies in the chain linking customers to their funds, the banks had a record of those funds and could share their identities and balances with regulators.This change would also help if a bank at the end of one of those long chains of software companies were to fail, the regulators said on Tuesday. At present, it is hard for the F.D.I.C. to determine whose money is covered by the $250,000 deposit insurance guarantee.Senior F.D.I.C. officials said in a briefing held for journalists on Tuesday that while they had been contemplating such rules for years, the collapse this spring of Synapse Financial Technologies, which operated banking software for online lenders, provided a good real-world example of how customers could be harmed.When Synapse filed for bankruptcy and shut down its services, it said it had only $2 million in cash on hand. But customers who had funds at the online lenders Synapse supported were collectively cut off from $300 million of their own money. The F.D.I.C. said it had received more than 1,000 customer complaints related to Synapse since May.The banks that take deposits from fintech customers are often small institutions trying to grow. Their managers could complain about having to meet new record-keeping requirements. Regulators said on Tuesday that any new requirements would apply narrowly to banks taking the kinds of deposits that could get lost in a chain of software companies.There are other methods smaller banks use to swap deposits and increase their customers’ deposit insurance coverage that would not be affected by the new proposal, the regulators said.The proposal made Tuesday was the first step toward putting the new rules in place. Regulators now want banks and other members of the public to provide feedback to help shape it. More

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      Chicken Soup for the Soul Entertainment Files Chapter 11

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      The parent company of Redbox, which rents movies through kiosks, filed for Chapter 11 bankruptcy protection on Friday.Chicken Soup for the Soul Entertainment, the parent company of the movie rental company Redbox, which is known for its distinctive red kiosks, filed for Chapter 11 bankruptcy protection on Friday.In the filing, Chicken Soup listed debts of about $970 million, and total assets of about $414 million. It owes millions to entertainment and media companies, including Universal Studios, Sony Pictures and BBC Studios Americas, as well as some retailers, such as Walgreens and Walmart, according to court filings.Chicken Soup for the Soul was founded in 1993 by two motivational speakers, Jack Canfield and Mark Victor Hansen. The company’s inspirational book series, with titles like “From Lemons to Lemonade” and “Angels Among Us,” contains collections of stories for specific audiences, for example new mothers or cat lovers.Its original book, published more than 30 years ago, dispensed life advice and stories of overcoming obstacles with the hope that it would heal readers’ souls just as “chicken soup has a healing effect on the body of the ill.”The company, which has published more than 300 titles, has sold more than 500 million copies worldwide.Chicken Soup for the Soul Entertainment is separate from its book-publishing arm, which is unaffected by the bankruptcy filing. It was not immediately clear whether the Chapter 11 filing would affect the Redbox operation. The company declined to comment on Sunday.In 2022, Chicken Soup for the Soul Entertainment acquired Redbox, a business founded in 2002 and recognized for its bright red DVD rental kiosks outside supermarkets and pharmacies. Redbox has about 27,000 kiosks across the United States.William J. Rouhana Jr. became the company’s chief executive in 2008 and ran the company with his wife, Amy Newmark, the publisher and editor in chief of the book division.Mr. Rouhana tried to expand the company into different products, including a line of soups, which ultimately failed. He founded the entertainment division of Chicken Soup for the Soul in 2016.The company requested relief to pay its employees, which it has been unable to do “for the two-week period ending on June 14, 2024.” Chicken Soup for the Soul Entertainment has about 1,000 full- and part-time workers.The company reported $636 million in net income loss in 2023, compared with $111 million in 2022, according to a filing with the U.S. Securities and Exchange Commission. At the time that Chicken Soup for the Soul acquired Redbox, the movie rental company had more than $300 million in debt. More

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      A Swindled Immigrant Community in Brooklyn Gets a Housing Reprieve

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      One man wanted to find a home for his aging parents to retire. One young woman’s mother wanted to raise her family there. Three families wanted their children to go to good schools.The five-story building in Bay Ridge, Brooklyn, erected on the site of a former Lutheran church, seemed to be the right fit for Asian families with modest incomes — they watched the construction with anticipation in the tight-knit neighborhood with a thriving Asian community. The developer, Xi Hui Wu, was a local whom neighbors recognized from the bank and the grocery store, and his then-wife, Xiao Rong Yang, was known as a prominent real estate agent in the area.For the next several years, tenants moved in and paid hundreds of thousands of dollars to buy their apartments. Then in 2018, each unit received a thick envelope in the mail. Inside was a foreclosure notice, and the tenants came to a horrifying realization: It was all a sham.Promissory notes and handshakes were never going to turn into deeds. For years, Mr. Wu had failed to make payments to a lender. He owed millions of dollars to the bank. And he had never received authorization from the city to turn the building into condos.That could have been the end — 20 different households, $5 million lost between them, evicted by a bank. Mr. Wu’s whereabouts have been hard to pin down, with conflicting information among tenants and government officials as to whether he fled to China or remains in Brooklyn. (Neither Mr. Wu, nor his lawyer listed in court records, could be reached for comment.)But the tenants now stand to become homeowners when the building is eventually converted to co-ops, under a deal that will be announced at a news conference on Wednesday.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More