How can a Company Show Positive Net Income but go Bankrupt?

It's quite possible for a company to show positive net income but still face financial difficulties. One key reason is cash flow problems—if the company has a large portion of sales as credit, it might not be collecting cash quickly enough to meet its obligations, which can lead to a cash crunch despite healthy profits on paper. This can be similar to the situation faced by businesses like Poundland, where operational issues might lead to store closures despite the brand’s overall success. If you're interested, you can read more about why Poundland is closing in Altrincham.

accumulate Debtors but no collection 

A company can show positive net income while facing bankruptcy by deteriorating working capital (by enhancing accounts receivable and reducing accounts payable) and financial tactics.

Quiet simple since most sales are Credit Sales & company has not put enough efforts to collect the accounts receivables due time so in the end runs out of cash to pay off due liabilities & thus gone bankrupt.

Even though the net income is positive, most of the revenue must be receivables. Since the sales would've been done on credit.