Mall Kiosk Mayhem

Jun 30, 2014 | Bankruptcy, Chapter 7 Bankruptcy

Mall kiosks. Every mall has them. But have you ever seen one that was packed with customers? Probably not. 

Whether you are hocking cell phones, piercing ears, or selling Christmas ornaments, turning a profit at a mall kiosk is a risky proposition. Here’s the story of someone who tried his hand at it, and unfortunately missed the mark. Luckily, Chapter 7 bankruptcy was there to save him when he closed up shop.

Such a Cute Baby

His initial plan had tremendous promise. Why not buy some blank onesies and a printing machine, rent a mall kiosk, and start a business selling cute baby outfits? Custom baby clothes were trendy at the time, so it seemed like a slam dunk.  

Crawling on all Fours

Unfortunately, business barely began to crawl before he ran out of money. Once the cash was gone, he turned to credit cards until they were maxed out. Finally, he attempted to obtain a small business loan but couldn’t get approved. That was the last straw. He was forced to close up shop only a short time after opening. 

Bad Baby Behavior 

So what was it that killed the business?

First, he didn’t anticipate getting burned-out so quickly. Between making the shirts at home and operating the kiosk without help, he was working over 100 per week. He couldn’t afford to hire help, and any time he took a vacation, he lost revenue because the kiosk would stay closed during business hours. 

Second, onesies that stated “iPood” or “theres a nap for that” didn’t sell as well as he had hoped, even with a kiosk conveniently located near the Apple Store. Apparently the trend of humorous baby attire had already played out before his outfits hit the market.

Who Will Clean up Baby’s Mess?

When he walked into our office his credit was shot, and he owed everyone money. After a thorough analysis of his situation, we determined Chapter 7 would completely eliminate all of his debt. We counseled him on how to sell off the remaining business assets and use the proceeds to survive on while preparing to file for bankruptcy. His case was quickly filed with the court, and he moved on with his life, free from any burdens of the old business. 

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