Economic Collapse - Fast

[Pete Grey]

It sounds a little like the 1980s when overtrading was quite common, a new business would start up and start opening new branches at a phenomenal rate, then all of a sudden they would be in trouble.

The problem was when a new store opened there would be a surge of business, the profits of which would be used to finance the next store, as trade steadied, takings and so profits dropped and it left a cash vacuum.

However with real estate, during covid, demand for property dropped and companies reduced rents chasing what business was available, this was a double whammy, and I presume this could cause a cash flow situation.