Wednesday, March 25, 2009
A good boardshop filling for bankruptcy
When I used to live San Diego, I went couple of times at Active and I found guys who were very helpful, had the passion for the sport and I had a great experience there. However Board Sports companies are in the same wagon than other industries so I learn today that Active is filling for bankruptcy.
We can't deny the fact that economy is down, that it is on a large scale that affect a lot of companies. However with that said there are opportunities everywhere and at any given year, I have never heard of a business saying: "it is such a great year, consumers spend thousands, there is no competition and it's a perfect world".
Down time just accelerate and show the true profile of companies and in that case bad management. The filling says: "these losses have been caused primarily by the Debtor's rapid over-expansion and market saturation, during which time the company's same store sales were decreasing substantially"
For sure they could have pull it off a bit longer if there was no recession but a company has to grow in revenue, otherwise an expansion is useless.
I would not be surprised to see quite a few companies filling for bankruptcy such as Spy that has never had a positive balance sheet in its creation in 1994.