COVID19 Delivers Death Blow To Many Businesses
Locally, in Harlan Kentucky, we lost our only theater. It was an AMC Classic that has now permanently closed. Rally News broke the closure of the theater back near the end of April.
On a national level the closures are starting to mount up and the effects will be and is devastating to our communities, states and our country.
The popular Steak n' Shake restaurant recently said they were closing 57 stores permanently due to the conronavius. As the stress on finances builds due to the closing of indoor dining, it is inevitable that there will be closings. The closures represent about 10 percent of the company's restaurants. Just where and what locations will lose this great place to eat is unclear at the time of this writing.
Some long in business restaurants are also not immune to the effects of the virus. Primavera a family-owned Italian eatery, has been in business for more than 30 years. It is permanently closing. While the closure was not solely due to the coronavirus, it played a major factor.
City Cafe in Baltimore is also closing forever. Co-owner Gino Cardinale said " It's amazing to make it 25-and-a-half years in the restaurant business, and it took nothing less than a pandemic to take us out."
While many businesses are offering curbside service, there is still a significant lose in revenue. Many stores now have 50 percent less cash flow or less. This makes sticking with the shuttered doors policy almost impossible for them to hang on long term. Even once reopened, the struggle to stay afloat will be hard. Some will probably still have to close forever, even after the pandemic is over.
Apple announced plans to temporarily close all brick-and-mortar locations outside of China. It remains unclear if or how many of the stores will open back up.
Arnaud’s Restaurant the 102-year-old New Orleans French restaurant closed permanently.
Barns & Noble the famous bookstore chain will be closing some location forever.
Bloomingdale’s - closing all locations.
and the list goes on and on.
You don't see many of these closures reported on the TV news. Some of these people have build a business, for many years, through blood, sweat and tears. Now due to the virus, they are being forced to give up their livelihood. This of course is devastating to the owners and their communities.
It is estimated that 1 in 5 restaurants could or will close permanently. While some may not think much about this, we must remember these places employ a lot of people. The struggle to find another job will also be difficult for these that are newly out of work. Unemployment numbers will continue to climb as more closures take place.
Initial estimates are saying that around 15,000 businesses will close forever due to the pandemic. But don't be surprised if this number is far more.
Small towns will probably feel the impact of closures even more. In some areas, they may only have a handful of businesses. If some of them close, the economic impact could really spiral out of control and cause even more closing.
If it is within your means, I urge you to support your local shops and do your best to help them thought this lockdown. In doing so, you are helping your community, because we know that once these stores are gone, there is a very slim chance of them ever coming back. Remember many store owners are feeling anxiety and maybe even depression, right now due to all the uncertainty. You can help by doing business with them now, encouraging them and by letting them know you will be there once they open back up.
~Stay Safe & Stay Strong~
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