Worldwide commerce has been halted with the effects of COVID-19, once busy malls & stores have turned into ghost towns. One companies downfall can lead to opportunities for risk-taking entrepreneurs. Well-known retails brand are going into bankruptcy and being bought up by investment companies who specialize in restructuring. One of these firms is Retail Ecommerce Ventures, a startup run by Tai Lopez And Alex Mehr.
Not surprisingly one of the biggest winners coronavirus has been online ecommerce and the biggest losers are walk in stores. The likes of Amazon and Walmart have continued to expand during the pandemic while small businesses are closing rapidly.
But it’s not the end of the road for purely brick-and-mortar brands whose profits have dropped. Retail Ecommerce Ventures are fishing around for distressed retailers and hoping to snap up high quality assets at a discounted price. These companies have IP & debt and will later be relaunched as more lean ecommerce ventures that don’t have high overhead costs.
“It’s unclear how far a business model based on reanimating ailing retailers might go,” notes NBC, detailing the phenomenon, “but Retail Ecommerce Ventures and other firms circling bankruptcy companies are bullish.”
Pier 1 Imports, Modell’s Sporting Goods, and Dressbarn are some of the iconic brands that were saved from bankruptcy and resurrected by Retail Ecommerce Ventures. Modell’s Sporting Goods was purchased for just $3.7 million by Tai Lopez and Alex Mehr’s firm. The deal was small change in comparison to their acquisition of Pier 1 Imports for $31 million.
CEO Alex Mehr is an astute businessman in his own right, having sold Zoosk (a dating app) for $300 million in 2019. Along with Tai Lopez, the two have spotted a lucrative niche that will be risky because they are competing against giants such as Amazon.
4 Fun Themes for the Next Open World Hit
Open worlds have largely dominated the past decade or so in video games. The concept popularized for modern consoles by...
Biaheza’s Net Worth in 2020: the Dropshipping Genius
Vlad Biaheza is a YouTuber and entrepreneur with a net worth of $1.5 million. Based in California, the 19 year-old...
Gary Vaynerchuk Charging People $15,000 to Pitch Ideas to him
Gary Vaynerchuk is one of the most well-known entrepreneurs and hustlers online with millions of millennials following him social media....