// STARTUP COMPARISON
Almundo vs Debenhams
Almundo failed in 2020 due to Bad Timing. Debenhams failed in 2021 due to Competition. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Almundo | 🔥 Debenhams |
|---|---|---|
| Sector | Ecommerce | Ecommerce |
| Country | Argentina | UK |
| Founded | 1926 | 1778 |
| Died | 2020 | 2021 |
| Raised | Private equity backed | Public company |
| Peak | 200 offices | £2.9B revenue · 166 stores |
| Primary Cause | Bad Timing | Competition |
// WHY EACH FAILED
🔥 Almundo
Bad Timing
Almundo was Argentina's oldest and largest travel agency, founded in 1926. It had modernized into an omnichannel model combining online booking with 200 physical offices. COVID-19 eliminated all travel in Argentina in March 2020. With no revenue and high fixed costs from 200 offices and 1,500 employees, Almundo filed for insolvency in June 2020 — 94 years after founding.
// LESSON
Physical presence in travel distribution is a structural liability during pandemic events. Omnichannel travel agencies carry the full downside of both physical and digital with the defensibility of neither.
Physical presence in travel distribution is a structural liability during pandemic events. Omnichannel travel agencies carry the full downside of both physical and digital with the defensibility of neither.
🔥 Debenhams
Competition
Debenhams entered administration in April 2019, was rescued, entered administration again in December 2020, and closed all 166 stores in May 2021. A combination of online retail competition, £600M in private equity debt loading, and COVID-19 lockdowns destroyed the business over a decade.
// LESSON
Private equity debt loading on a structurally declining business accelerates the inevitable. Debt amplifies both upside and downside. On the way down, it is a death sentence.
Private equity debt loading on a structurally declining business accelerates the inevitable. Debt amplifies both upside and downside. On the way down, it is a death sentence.
// EXPLORE FURTHER