Right, but we don't know how much cash they have so stopping the bleeding could help a little or a lot
MikeH is absolutely right.
It has been clear for awhile.
There is only one reason for the absurdly lengthy production delays.
THEY ARE ON C.O.D. AT THE PRESSING PLANTS AND EVERY SUPPLIER. Or worse - they have to pay up front for the whole order.
That causes them to lose at least 3 months cash flow as they no longer have payment terms at suppliers.
Layoffs give them a small one-time bit of runway. A month at most.
But the worst bleeding isn't just cash, it is bleeding customers. They have been experiencing the vinyl equivalent of a run on the bank. Once that starts, there is no stopping.
They should have some level of cash reserves to burn through - memberships paid in advance, preorders. But that must be pretty much gone by now.
They are likely searching for survival - a sale of the company, an infusion of venture capital (not likely) - or buying time before closing.
MikeH is right that it will simply be last person, turn out the lights. They will abruptly cease to exist.
In a small business bankruptcy, when it becomes impossible to deny the inevitable, you will typically see ownership in the last months building up as much cash as possible - taking orders they know will never be fulfilled, not paying any suppliers, not paying rent etc. - so the ownership can scoop as much cash as possible on their way out.
