TURBO JET

Why would you not sell the brand instead of just closing the doors

Jupiter Sunsation

A, If it makes no money, nobody is buying it

B. If it loses money and they carry it 1-2-3 years then close the doors they lost more money

C. Questionable economy in the next 12-24 months for recreational boating........Why not focus on what you are good at rather than carrying a division of dead weight?


The above scenario is going to face many businesses in 2020. It is happening locally with bars/restaurants every week in the local paper and with businesses like Pier 1, Tuesday Morning on the national level. Saw an Irish bar in Miami that had been there for 35 years decide to close. They missed St Patricks Day (biggest day of the year) and they were older guys that didn't want to pour their retirement funds into a slow business waiting for the good times to return. Local breakfast place was evicted and they put it on Facebook to try to get crowdfunding to save the place (they were 25K behind). How many pancakes do you have to serve to make 25K for back rent? Breakfast/lunch only and they were a franchise (no liquor profits/franchise costs taking a piece of the profits). Some businesses can't recover the lost revenue. If you were a patron of the pancake place once a week and they were closed 2 months then you missed 8 visits. It's not like you are going to come back 8 extra times to make up their revenue losses.


The landlord in the pancake eviction has his own troubles. Built a 150mm+ retail complex on the waterfront with Chinese investors money, no US bank would finance it. 6 years later it was probably 80-90% full at best, 5 major tenants bailed on their leases after 5 yrs was up leaving them closer to 60% full. Property taxes are 1.6mm+ a year and the Chinese investors have not seen a penny in return. Investors have sued trying to get some of their money back. So losing tenants + huge carrying costs + lawsuits = a cloud over the whole complex which will hurt new leases. His own 80 Viking is for sale.........crash is coming.

JaayTeee

Weren’t they the only one left producing 2 cycle outboards?