It's a shame to see them go. But I doubt anything would be different if they were in another state. The same supply and demand issues would be faced. And with a factory direct business, there was no "overstock" to fall back on when the supply started petering out - so they had no inventory to fall back on. That's going to happen regardless of where they were located.
I know businesses that were on their very last legs during the shut downs that stayed in business. I know businesses that were doing well throughout the shutdowns that closed. So to suggest that the shutdowns were the reason for Lazy Daze's closing is simplistic and wrong.