Marvel Entertainment filed for bankruptcy in 1996 after expanding through acquisitions and taking on heavy debt.
Marvel’s publishing business had become a major force in comics, but the company pursued an aggressive expansion strategy during the early 1990s. It acquired comic distributors and toy-related businesses while the collectibles boom began to fade and comic-shop sales weakened.
Marvel Entertainment filed for Chapter 11 bankruptcy protection in December 1996. The case involved a prolonged struggle among investors and executives over the company’s future. Marvel eventually restructured, sold or exited several businesses, and concentrated more heavily on licensing and intellectual property.
The bankruptcy did not mean that Marvel’s characters disappeared or that the comic publisher ceased instantly. The company survived through restructuring and later grew into a major entertainment business before Walt Disney acquired Marvel Entertainment in 2009.