Under Chapter 7 bankruptcy law, a company can sell off its assets and use the money to pay its creditors. The creditors may not get all that is due them, but they do get something. The company gets debt relief. That is the situation for online video sharing company Veoh.
Veoh was a distant competitor to YouTube, but a bit more pop-culturish. The site featured user videos, TV shows, movies, music, and indie film clips.
Veoh CEO said on his blog post that legal challenges was a factor in the company going under.
When it comes to doing business online, having a good idea isn’t enough. You’ve also got to be able to market your idea and get enough people behind it to sustain a profitable business model. Be sure you plan your business well. You’re never too small to fail.