Quoted from Wolfmarsh:I feel so bad for the people that put their lives and dreams into opening places like these, only to see them destroyed by covid.
There were multiple arcades that had just opened or were about to open before this hit. I feel really really bad for them because it’s all sunk costs and no cost recovery at this point. Multiple people I know took out second mortgages or part of their 401K to make this happen. For us we got lucky. I invested over several years, built up slowly as revenues dictated and so we are not ground into mincemeat yet. The problem with the other ones is that they loaded up on debt and now the debt needs to be serviced. Very little flexibility in doing so. Renters get evicted, but businesses get thrown into Chapter 11 liquidation. Very little loan and debt forgiveness out there. Banks and landlords want to be paid and I get it. But there are repercussions, and they will be long lasting. The activation energy to kick out a business or call a loan are far far less than starting a new business. Our goal at this point is stay open but try to minimize the bleeding by selling off machines when needed. Hope it works