"Titanic" Company: From influential to bankrupt

"My Heart Will Go On..." Just hearing the name "Titanic" probably brings Celine Dion's iconic song to mind for millions of viewers. The image of Jack and Rose standing at the bow of the massive ship, holding hands, arms spread wide, gazing into the vast blue ocean, floats before our eyes. The ship is on its way from London to New York, crossing the endless Atlantic, heading towards a dreamland where they will step ashore and build a dreamy future. But suddenly, the ship strikes a massive iceberg—and then! We all know what happened next.

When Jack sank into the depths of the Atlantic, there wasn't a soul who didn't shed a tear. Another piece of sad news for Titanic: the company that built it is going bankrupt. The famous company behind the construction of the Titanic was founded in 1861. This historic company survived for over 150 years, enduring many ups and downs. Sometimes it generated controversy, other times it sparked discussion. Now, after 163 years, the company is back in the spotlight, this time due to its sudden declaration of bankruptcy. Recently, the company announced that even with loans, they can no longer cover their daily expenses. Let's explore the full story behind the downfall of this influential company.

The beginning of Titanic
March 31, 1909. The construction of the Titanic began at the Harland & Wolff Shipyard in Belfast, Great Britain, funded by the International Mercantile Marine Company. In fact, construction on two ships, the Titanic and Olympic, began simultaneously. The structure and design of both ships were fairly similar. Fifteen thousand workers began work at the shipyard.

At that time, erecting such a large structure was an extremely difficult task. Despite taking numerous precautions, they could not prevent worker fatalities during the construction process. A total of nine workers died during this period, and nearly 246 were seriously injured. The journey of the Titanic began with death.

On April 2, 1912, history was made. The entire construction of the Titanic was completed. It cost about $7.5 million (equivalent to about $165 million today).

Titanic’s voyage
After the Titanic was built, the company issued a statement saying that even God could not sink this ship. Perhaps fate smiled in the shadows at that moment. On April 10, 1912, this luxurious ship embarked on its voyage from Liverpool. The captain was the experienced sailor Edward John Smith. But he couldn’t safely guide the ship to its destination. On April 15, 1912, the Titanic struck an iceberg in the Atlantic and sank. Most people know this tragic story.

Out of the 2,224 crew and passengers on board, 1,496 perished in the disaster, including the ship’s captain. The Titanic did not have enough lifeboats. There were only 20 lifeboats onboard, so many lives couldn’t be saved.

How the company went bankrupt
Despite the Titanic's sinking, the company did not shut down. They continued to impress with one technological marvel after another, blending innovation with modernity. Their most recent creation was the submersible "Titan," designed for deep-sea exploration. Just a year ago, in an attempt to view the wreckage of the ill-fated Titanic, the submersible itself was destroyed, and the five passengers aboard tragically lost their lives. Once again, the company faced criticism.

Before that memory could fade, another sorrowful news emerged: the iconic company has declared bankruptcy. On September 16 of this year, British shipbuilder Harland & Wolff declared itself bankrupt. The state of the company 112 years after the Titanic sank has left many financial experts surprised. Harland & Wolff's interim executive director, Russell Downs, issued a statement explaining that they no longer had the necessary funds to continue daily operations. With no other option, the company had to declare bankruptcy. Downs further stated that they had requested $264 million from the government due to their financial difficulties, but the government refused. As a result, even loans could not alleviate their financial crisis.

This is not the first time.
Meanwhile, the shipbuilding company that built the Titanic is currently assisting the British government in constructing three warships. Despite the company going bankrupt, they have made it clear that this project will not be affected. However, this is not the first time Harland & Wolff has faced a financial crisis. Back in 2019, the company found itself in a dire situation. At that time, the British government appointed an administrator to manage the crisis. But just a month after the administrator was appointed, the company was bought by energy firm InfraStrata.

After that, the shipbuilding company managed to stay afloat for a while. However, over the past 20 years, shipbuilding companies have largely distanced themselves from Harland & Wolff, leading to financial instability. To overcome this, the company took out large loans, which is now considered one of the main reasons for its bankruptcy.