In this age of people still claiming bankruptcy has some sort of stigma, you’ve got to winder why it’s a smart move for companies but a perceived bad move for consumers.
Recently, Robert Kiyoskai, the author of the Rich Dad, Poor Dad series found that for one of his companies, bankruptcy made sense.
According to reports, Kiyosaki’s company, Rich Global, LLC ran into trouble with the Learning Annex.
According to one report, Bill Zanker from Learning Annex said “I took Kiyosaki’s brand and made it bigger. The deal was I would get a percentage and he reneged. We had a signed letter of intent. Learning Annex is the greatest promoter. We put his ‘Rich Dad’ brand on a stage. We truly prepared him for great fame and riches. But when it was time for him to pay up, he said no.”
“This has taken years in court. I won even more money than I asked for from the jury, then he declared corporate bankruptcy. Oprah believed in him, and Will Smith believed in him, but he didn’t keep his promise to us.” – Source
Of the assets of the company, the vast majority is actually notes receivable from Robert and Kim Kiyosaki.
Additionally the company is listed as owing $2,205,217 Rich Dad Operating Company out of Scottsdale, Arizona. – Source
There is purported class action suit against the company as well.
According to Wyoming records the manager/owner of the company is Rich Dad Operating Company, LLC out of Scottsdale, Arizona.