Rumors are swirling over the impending closure of Mamalu. Apparently, the owners don't like each other and want out. But that's not the whole story. I talked to one of the owners recently and she was very upfront and honest about the financial state of the business. In the 2.5 years they've been open, they have never made a profit nor have the owners made a salary.
The rent is $4,500 a month, and they have 6 years left on their lease. I believe they are asking $25,000 for the business. That doesn't sound like a lot until you start factoring in the other costs associated with maintaining it (insurance, utilities, accountants, lawyers, staff, etc)
I think there are some things that could be done to make Mamalu profitable, but it would be an undertaking and would require capital. I hope that someone comes through and buys it because it's one of the only things to do in the neighborhood with your kid.
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