Is that because they didn't know what they were doing or because they saw the writing on the wall and planned their exit?
Low margin industries tend to have a lot of things that are done "wrong" by the calculations of the clipboard warriors that dominate online discourse because said calculations tend to assume constants for things that should are variable (like the regulatory situation, state of technology in an industry or rate of progression therof) and assume amortization timelines that are unrealistic. When your margin is razor thin it often makes the most sense to do things in a manner that's non-optimal on paper but yields guaranteed returns today. Do that every day and you stay in business. You might make less money in the long run but you aren't taking on risky capital investments or boxing yourself into a risky corner with inflexible business practices.
There are two metal recycling yards local to me.
One is part of a chain, run by a subsidiary of a public company. All they do is scrap metal and they are highly efficient at it. Things are clean and run by the book. The facilities are orderly. The machines are new. You can't scrap a car, a street sign, or anything else that's suspect without giving them all sorts of ID. On paper, they do everything right.
The other one is a 150yo family own business. They do scrap metal but have a handful of other income streams using the same facility (everything is for sale, basically). I don't think they have a single tool or piece of equipment that was made this century. The facility is always overflowing with piles of various materials that come and go in no apparent order. Their workplace safety is fine, but absolutely rife with tiny things they could get fined for. They pay their employees crap and make up for it with perks (free lunch every day, free fuel oil in the winter, can use company trucks and facilities for personal projects with permission, etc). I'm pretty sure you could scrap a stolen cop car there if you brought it in the same day that the full train cars of processed material go out. On paper all this is wrong. The clipboard warriors would have a field day making it "better"
Guess who weathered the pandemic with nary a slowdown and guess who couldn't retain staff or keep their machines running and cut back hours?