The Rats Are the First to Know to Leave the Ship: Insights into Company Bankruptcy and Employee Departures

Throughout my career, I've observed a pattern that is often all too familiar: as companies approach bankruptcy, it is the upper management who are the first to leave the sinking ship. They possess the most information and, naturally, act in their best self-interest by seeking alternative employment options.

The Warning Signs of a Sinking Ship

Hit harder by the recession and facing bankruptcy, a company's upper management typically become the first to notice the warning signs. They may start leaving before any clear signs of bankruptcy are evident, as they often have a better understanding of the company's financial situation.

Self-Interest and Survival

Even in industries that frequently face bankruptcy and still survive, like the airline industry, the same principle applies. The best-trained and most aware employees leave before the company's fate is sealed, driven by self-interest. They recognize that waiting it out may lead to an opportunity for new investment or a chance to join a healthier company.

A Personal Experience: Leaving a Company Tangled in Fraud

I once worked for a company that marketed products and services to college students. It took me a while to realize that the company was poorly run and involved in a significant amount of fraud. The owners were dishonest and managed to keep the business afloat for longer than expected, even as I thought it was sinking fast.

Working While Eyes Were Turned Blind

Although I needed the money, I chose to turn a blind eye to the fraud, understanding that by continuing to work for the company, I was contributing to its continued operation. However, this act of self-deception began to weigh heavily on me, as I was effectively aiding a fraudulent system.

The Tumultuous Fall and Aftermath

Before bankruptcy was officially declared, I requested two weeks off to "take care of family matters." Reluctantly, my bosses agreed. Unfortunately, my leave coincided with the filing for bankruptcy. With no job and no income, I turned to unemployment benefits to sustain myself.

During the six months I waited for my benefits to run out, I embraced a lifestyle filled with adventure, spontaneity, and a touch of rebellion. I hitchhiked across the United States, attended memorable concerts, explored my psyche with drugs, and even found love in unexpected places. This period, though challenging, was also one of the most fulfilling and transformative in my life.

A New Beginning and the Pursuit of Knowledge

The experience of bankruptcy and unemployment offered me a chance to reflect and make changes. Soon after, I fell in love and found a well-paying job. A year later, I started law school, marking a new chapter in my life filled with growth, learning, and personal satisfaction.

Conclusion: Lessons from the Sinking Ship

The story of the company marked a period of transition and personal growth. It serves as a stark reminder of the importance of ethical business practices and the impact of fraud on not just the company, but on the lives of its employees. Despite the challenges faced, the experience led to new opportunities and a more fulfilling path forward.

For those in positions of influence, it is crucial to stay informed about a company's financial health and act with integrity, even when faced with the dark realities of bankruptcy. For employees, while self-preservation can be a priority, ethical considerations should not be entirely disregarded. The lessons learned during this turbulent period are valuable for personal and professional growth.