Walt Disney filed bankruptcy in the 1920's when his first animation studio failed.
The Bankruptcy of Mr. Walt Disney
Walt Disney, the famous cartoon creator, filed for bankruptcy in the 1920’s.
In 1920 Disney formed his first animation company Laugh-O-Gram Studio in Kansas, with the intention of making animated fairy tales. Laugh-O-Gram found a financial backer in New York, and Disney began building up his staff of animators. However, the backing firm went broke, and Disney was no longer able to pay his employees or his debts.[i]
In 1923 Disney formed a new company with a loan from his parents and his brother. Walt and his brother Roy began making “Alice Comedies” which were short cartoons revolving around Alice from “Alice in Wonderland”. In 1928 he created Mickey Mouse, which took his career to new heights.
Even after Mickey Mouse, Walt Disney came to the brink of bankruptcy yet again. The second stumbling block for Walt Disney, in terms of money, came prior to the release of Snow White and the Seven Dwarfs. Disney ran into financial trouble midst the production of his first major film. In 1937, close to bankruptcy for a second time in his short career, Disney approached the bank for a loan to complete his film. This loan was agreed and Disney was able to fund his staff and studio through to full completion of one of the most notable film releases of all time. It became the most successful motion picture of 1938, and the most successful sound film made up to that point. It was followed by other Disney classics, including Pinocchio and Fantasia.
When he died in 1966, Walt Disney was estimated to be worth an incredible $5 billion.[ii]
