What is the advantage of going out of business in one location, and then reopening the same business with a new name?

There are probably some legal and monetary issues behind it which I don’t fully understand. Maybe they did have a bad name in the community, maybe they filed for bankruptcy, could be anything really. Might even be just the fact that a grand reopening always attracts a lot of new and curious people to their business, maybe even some local press coverage.

It’s a way of wiping away your debts and starting over again.

A new name might signal a different message. Plus the overall perception about the recession can change.

My company rebranded 4 years ago , to make us sound more modern A lot of people thought we were going bust and just starting up with a new name.

There was a clothing store that kept doing “Going out of Business” sales in my city, every couple of months.
The store worked like that for around 10 years. Same name and same owner for that time.
It was probably just their business plan.
They traded used clothes and stocks. Maybe the “Out of Business” part was referring to where the stocks where coming from.

Most important thing in business?
LOCATION, LOCATION, LOCATION.

And CUSTOMERS.

@Sarcasm These businesses I’m talking about stay in the same location. They just have a Going Out Of Business Sale, empty their store (or cover the windows), then open up in the same place with a new name and a “Grand Opening” sale. This takes place with numerous furniture businesses all over the state and has been going on for as long as I started noticing (35 years).

Oh. In that case, I’d guess they have some really shitty merchandise that they otherwise can’t get rid of.