> I don't know why this is the pattern but it seems to have played out several times over the last 2 decades that I've casually watched this syndrome.

This is a pretty common pattern in capital intensive businesses. It's often the case that revenue is inline with operating costs, but revenue can't really ever pay for the start up costs. That dooms the initial business, but after bankruptcy it can be viable.

Depending on circumatances, the very visible bankruptcy also helps deter other businesses from joining the market. But if the cost was high due to technology, doing the same business 10-20 years later can work out because the start up costs may be significantly less.