Marvel Comics filed for Chapter 11 bankruptcy protection in 1996 through its parent company, Marvel Entertainment, after a severe downturn in the comic-book market.
During the early 1990s, publishers released many special editions, variant covers, and heavily promoted collectible issues. Speculators bought comics expecting their values to rise, but demand collapsed when readers stopped purchasing large quantities. Comic-shop closures and falling sales placed additional pressure on publishers.
Marvel’s financial problems were also connected to corporate disputes and the troubled merger of Marvel Entertainment with Toy Biz. The bankruptcy filing involved Marvel Entertainment, not the disappearance of the Marvel characters or the end of comic-book publishing itself.
Marvel emerged from bankruptcy in 1998 after a restructuring and the consolidation of Marvel and Toy Biz. The modern Marvel brand later expanded dramatically through film and television, but that later success should not be confused with the company’s 1996 financial crisis.