Quote:
Originally Posted by Michael T
I think it is nice to think you have a quick recovery, but very few business models have a zero revenue assumption in their downside financial model. If you do not have liquidity, you have bankruptcy. Many small businesses will liquidate, try getting a debtor in possession financing in bankruptcy with zero ebitda. You might file a Chapter 11, but soon be a Chapter 7. How does a small retailer or restaurant restart, with past due rent and unpaid payables?
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What is to stop the small retailer or restaurants, or their former staff, from opening a new shop or restaurant? The empty shop will be available, and the former stock / equipment available at fire sale prices
Although I agree, they are unlikely to treat themselves to a new Rolex anytime soon, especially if new Rolex stock become available and FOMO recedes