I reckon it's over hey, if you fire all your staff what do you have anyway? The reality is businesses can't just go into hibernation, they have liabilities they need to fund (employee entitlements, leases, debt). It would need to shed every single person, get out of office lease, de-list, loan forgiveness plus a whole lot more to have any chance of surviving. Revenue will be zero for months and months, obviously. I struggle to see how Flight Centre and WebJet survive this, let alone a company at this stage of life cycle. The problems are the same - FLT has hundreds of office leases, debt etc. It goes without saying but is also worth reiterating that a zero revenue environment has never really been seen before. Most companies that go bust still have revenue. This is a new paradigm - a terrible one.
JAY Price at posting:
9.0¢ Sentiment: Sell Disclosure: Not Held
