Why do shops keep going bust then coming back online/in other shops?!

[Mummyof287]

I get being online only prevents the high overheads of renting shop space, but what I don't get is why they close down completely then suddenly pop back up again, either as part of another shop ie; mothercare in boots/mamas & papas in NEXT or habitat in argos, or just randomly pop back up like Toys R Us has done....why didn't they just stay open and down scale, or go straight to online only in the first place 🤔

Often when shops close it's the result of a cash flow crisis, so if they are unable to negotiate a loan they don't have any choice but to close down because there's no money to pay suppliers and staff.

That doesn't mean the business is completely worthless though.

After a while someone often comes along and sees a brand that still has some value and decides to buy it up and start trading again.