Who else will file for Bankruptcy in 2018?
We are sitting in the middle of changing times. Technology has fueled the start-up world from mid-90’s until now. There was a bit of a misstep during the mortgage crisis but the ones that survived came back stronger than ever with plenty of new companies in every vertical planting seeds. Many of these companies have changed the way we live our lives. One of them is Amazon.
Toys R Us announced this past week that they are closing 180 or more stores. Physically those stores have a huge amount of space. What happens to those spaces? What happens to the people who own those properties that have leveraged them over the years because the rent is paying for the loans they took against the properties?
This was bound to happen. Amazon has changed the way we shop for everything. The long tail of Amazon is that new brands have sprouted up and they understand that they need to sell directly to the consumer without having a brick and mortar space. Brick and mortar is an added bonus as the brand grows but it is not the end all be all.
On the other hand, because of technology, there is a burgeoning reaction to the digital age where people want to engage with the old world ways from being a bartender to opening up a barbershop to becoming a cobbler to making furniture or even crafting new beers.
I have walked through empty open-air malls in LA and wonder about what to do with this real estate because clearly, these stores will go out of business at this rate. To mourn for the Toys R Us is worthless, they had a nice 75-year run, and that is something that any company would love to have. Perhaps they just didn’t see the future coming because there is no doubt that we will see more companies of a different era close their doors and go bankrupt in 2018.
How will malls become the new meccas again? So many ideas. What comes next is the opportunity that excites me.