non-sequitur.

I did see this occur personally with this breakfast joint that closed down when some law changed that required some minimum benefits or something or other that added to the payroll expenses and made the venture not worth it. I remember the owner going around informing the guests at their tables that they'd be closing in the next month and if anyone knew of any jobs for their employees they'd welcome the suggestions. It was one of the rare breakfast places in town so it was very missed by us when it bailed. Eventually that location became a Five Guys. It took several years but eventually another breakfast place moved into town.

If a business needs to underpay its staff to survive then it has a faulty business model, so it deserves to fail, and to be replaced by something more robust.