The leadership lessons hiding inside Spirit Airlines and GameStop
Two headlines recently caught my attention — and not for the reasons most people think.
Spirit Airlines filed for bankruptcy, and GameStop is making a move on eBay, an apparent $56 billion bid built on borrowed money for a company four times your size, in a business you’ve never run, announced without even calling them first. That doesn’t seem like bold leadership. Some would say that’s the most expensive identity crisis in corporate history. And, the court of public opinion is rendering verdict after verdict, moment by moment.
At first glance, these seem like separate stories, but they are actually the same story told twice. One company appears to be sinking into debt it never should have accumulated, while the other is chasing an unrelated revenue stream because its core business is apparently failing. Both companies made decisions in the boardroom, during calm times, that led to the crisis you’re reading about today.
That’s the part most people miss.
Crisis is rarely unforeseen – most crises smolder before they erupt. It’s a consequence. I’ve spent my career watching organizations invite disaster through poor leadership. Overleveraging. Distraction. Identity drift. These aren’t market forces; they are conscious leadership choices often made with a short-term outlook.
Spirit and GameStop aren’t alone. WeWork valued itself at $47 billion based on debt, only to collapse. Bed Bath & Beyond abandoned the product lineup that built its brand, chased a shiny new strategy, and went bankrupt. Way back in the day, Kodak invented digital photography, then didn’t deploy it. The names change. The pattern stays the same.
Three questions every leader should ask right now:
▸ Are we carrying debt that leaves us no room for error?
▸ Are we chasing opportunities outside our core identity?
▸ Do our people know exactly who we are and what we stand for?
If you hesitated on any of those, have the conversation now, not when you’re in pain and the marketplace is watching. Stick to your strengths and do what you do best, better than anyone in the marketplace. Remember, reputation leads to trust, and trust leads to valuation… and not all currency is financial.
