Collins & Aikman

Collins & Aikman's 2005 bankruptcy collapsed an auto parts supplier after aggressive acquisition strategy loaded debt it couldn't service. The company had grown to $3.3 billion in revenue through acquisitions during the SUV boom. When auto demand softened and raw material costs increased, Collins & Aikman couldn't absorb the squeeze. The bankruptcy investigation revealed accounting fraud, adding criminal prosecution to financial collapse. The company demonstrated auto supplier fragility: thin margins, customer concentration, and commodity exposure.