It’s safe to say Augusta lost its mind with the news we were getting a Dave and Busters.
Yet 2020 has been especially hard on the chain. According to Restaurant Business, Dave & Buster’s reported last week that its same-store sales plummeted 87% for the quarter ended Aug. 2.
Fox Business News reported Wednesday the company stated it may need to file bankruptcy. “The company warned Wednesday that it may need to file for bankruptcy if it can’t reach a deal with its lenders amid the coronavirus’ squeeze on the industry, the Wall Street Journal reported.”
The Motley Fool reported Thursday “the company’s balance sheet is also heavily leveraged with a debt-to-equity ratio of roughly three times at the end of the second quarter. Weathering the current storm will be difficult and, it seems, it is getting to the point where it may be impossible.”
Additionally, the MF stated, “At one point in time, before the global pandemic, Dave & Buster’s business model of mixing food and entertainment, in the form of video games, was seen as a plus.”
The immersive experience was hard to replicate at home on the net.
“But when COVID-19 led to the shuttering of nonessential businesses, Dave & Buster’s sales came to a virtual halt.
Even though the company has started to reopen its restaurants, the lingering impact from the coronavirus is still a major headwind.
Simply put, customers are leery of going into a group setting where everyone is touching the same games. It’s an understandable fear, but it puts the entire Dave & Buster’s concept into question.”
The Augusta location was to be on Cabela Drive next to Costco. They were approved for a liquor license in September of 2019, yet never broke ground.