1/x Unpopular opinion...
This thread went viral yesterday on REtwit.
Am I the only one who thinks the last thing the retail sector needs right now is gov backed loans?
We’re coming off a great economic run. Margins in these businesses are incredibly slim.
This thread went viral yesterday on REtwit.
Am I the only one who thinks the last thing the retail sector needs right now is gov backed loans?
We’re coming off a great economic run. Margins in these businesses are incredibly slim.
https://twitter.com/hrgpforever/status/1289554743128358914
2/x How are companies like Jersey Mikes, Massage Envy, Moes Southwest going to take on a bunch of debt right now and possibly pull out of it?
The next 18 months will be brutal. 1/2 the volume as the previous 18 months of they’re lucky.
The next 18 months will be brutal. 1/2 the volume as the previous 18 months of they’re lucky.
3/x This guy (whos had a doomsday attitude since March BTW) wants to open up the floodgates to get them capital?
Are things going to get better for retail? Not for a while...
They can’t get debt because they can’t afford debt. Period.
Are things going to get better for retail? Not for a while...
They can’t get debt because they can’t afford debt. Period.
4/x Hibernate, use PPP money, cut costs and wait for stimulus. Don’t take debt to throw good money after bad.
The companies that stop spending and restructure for the post-Covid world will survive.
The ones with interest payments they couldn’t afford before Covid will die.
The companies that stop spending and restructure for the post-Covid world will survive.
The ones with interest payments they couldn’t afford before Covid will die.
5/x we should absolutely not put tax dollars out in the form of SBA loans to retail chains right now.
Stimulus? Sure. Non-guaranteed debt? Sure.
But long term guaranteed debt as we know it and did it the last 10 yrs?
Am I the only one who thinks that’s silly?
Stimulus? Sure. Non-guaranteed debt? Sure.
But long term guaranteed debt as we know it and did it the last 10 yrs?
Am I the only one who thinks that’s silly?
6/6 I’m sure a lot of people a lot smarter than me will be able to put me in my place and educate me.
What am I missing?
What am I missing?
It’s a debt crunch. In some cycles debt gets harder to get. That’s what we prepare for as business owners. I’m confused at the response. Levering up right now isn’t the answer.
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