
Episode #26261
Business Blooper: Buried by a Bonding Rule
Some empires don't collapse from a bad product. They collapse from a rule nobody read closely enough. Through the late 1980s and early 1990s, Ray Loewen built The Loewen Group into the second largest funeral home company in North America, buying up small, family-owned funeral homes across the United States and Canada while deliberately keeping their local names on the door. In 1995, a contract dispute with Biloxi funeral home operator Jeremiah O'Keefe went to trial in Jackson, Mississippi, and a jury returned a $500 million verdict, the largest in state history. Unable to post the $625 million appeal bond required under Mississippi law within seven days, Loewen settled for $175 million, a sum the debt-heavy company could not absorb. The Loewen Group filed for Chapter 11 bankruptcy in June 1999. From bsnsBasics, this is bsnsBloopers, the weekly podcast that unpacks the business decisions that sounded smart, until they weren't. Hosted by Ron Trucks. New episodes every Friday. Another lesson from bsnsBloopers, the podcast that proves even smart ideas can blow up. Visit us at www.bsnsDAILYpodcasts.com

