There are levels of being a 'luxury brand', and you find out about them when consumers are spending less money than they used to. True luxury brands like Rolex and Versace are unaffected because the people buying from them are rich, and don't tighten their belts during an economic crisis. For a mid-range luxury store like Cole Haan, a recession is a painful reminder that their client base isn't as wealthy as they'd like them to be. USA Today named Cole Haan as one of the 26 brands most at risk of closure in 2018, and not without good reason.
When Nike controlled the Cole Haan purse strings everything was fine. Going solo in 2013 under the stewardship of Apax Partners was always going to be a risky move, and the new business plan was even riskier. Instead of making the dress shoes its always been known for, Cole Haan announced a move into sneakers, putting it head to head with its former owners. Given the size of Nike, there was only ever going to be one winner.
Not all celebrities have fame and fortune, some are just famous – and in a ton of debt. They came from rags to riches, then went back to rags. Whether they’ve filed bankruptcy, ended up in court, or just can’t stop spending, celebrities mismanage their money just like everyone else. They just hide it well.
50 Cent coined the term “wanksta,” then “partied like it was his birthday” until he filed Chapter 11 bankruptcy in 2015. The rapper was said to be anywhere between $10 million and $50 million in debt. In 2016, a federal bankruptcy court judge in Connecticut approved a plan for the founder of G-Unit to pay his debts back. He was able to get his bankruptcy discharged in February of the following year.
Following a 45-year-long career in Hollywood, acting in more than 70 films, actor Gary Busey found himself in more debt than he was worth. In 2012, it was reported that Busey owed between $500,000 and $1 million worth of debt, but only had $50,000 to his name. The 74-year-old actor owed money to hospitals, banks, the L.A. Waterworks District, and even a storage company. He filed Chapter 7 bankruptcy that same year. Despite his longstanding career in Hollywood, Busey's net worth is now only $500,000.
Burt Reynolds is still worth five million dollars, but his battles with debt date back more than 20 years. Between bad investments and a pricey divorce from actress Loni Anderson, the 1970s superstar had to deal with over $10 million in debt and decided to file Chapter 11 bankruptcy in 1996. While testifying in a 1994 custody hearing, the South Florida native said he spent $40 million getting through his divorce.
The former Hollywood bad boy, Charlie Sheen owes the IRS nearly $5 million. But that's not all. In 2016, his net worth was reportedly still as high as $150 million, but he was nonetheless $12 million in debt at the time – including mortgages, legal fees, and taxes. That same year, Debt.com reported Sheen owed nearly $300,000 on an American Express card alone.