Down to Their Last Dollar

Businesses fail every day, from world-beaters (like TWA and Lehman Brothers) to sexy high-fliers (DeLorean, Enron) to Steady Eddie, old-school icons (Toys “R” Us, Sears). Sometimes, of course, market conditions simply turn Sisyphean. But often, when that boulder starts to roll backward, a leader’s grit, imagination, resourcefulness, and ability to conjure a little luck can mean the difference between a brave new chapter and, well, Chapter 11. Here, four businesses that went from nearly bust to total gangbusters.

- By Bill Shapiro

Apple: Love Thy Rival

In 1997, the creative, efficient, cash happy heavyweight we know as Apple was on the ropes, getting slapped silly and looking for a place to plotz. The company had gone two years without turning a profit when the board finally sent CEO Gil Amelio out to orchard. Enter—or, rather, reenter—famously fired co-founder Steve Jobs, who, with the game clock winding down, had to act smart and act fast to save his company. He quickly killed the Newton, a category-defining personal digital assistant that was both pricey and kludgy. But the more difficult and humbling move was seeking a strategic partnership with archrival Microsoft. “We have to let go of this notion that for Apple to win, Microsoft has to lose,” Jobs explained. Microsoft invested $150 million, Apple regained its footing, and Jobs showed the world what true leadership looks like. He then made Jony Ive head designer, launched iTunes, the iPod, and the iPhone, and showed the world what domination looks like.

FedEx: Bet the Company