Closures a slowing, but painful, reality for struggling businesses
City slowly emerging from a punishing economic slump, picture not yet rosy
What we’re seeing from the chamber of commerce’s perspective is the numbers are similar to last year, but they’re showing continuous signs of improvement.
Dave Fletcher saw the writing on the wall when the regular hordes of Halloween costume hunters last month were a fraction of what they were three years ago.
After operating Chuckles Unlimited at 6130 1A Street S.W. for 15 years, Fletcher and his wife, Bernadette, had weathered the highs and lows of operating a small business, but had always continued to grow since they purchased the legendary Calgary costume and novelty shop, a staple business in Calgary for more than three decades.
But after enduring three trying years, Fletcher said they have no choice but to pull the plug on the labour of love, with costs soaring, business waning and a future that is at best uncertain.
“It wasn’t the way we wanted to go,” said the 58-year-old, who took a flyer on the business when it was set to close 15 years ago, mortgaging his house to secure the necessary capital. “There was a lot of tears. There was a lot of discussion back and forth — my wife wanted to continue against all odds.
“We’re just trying to get out now without any deep scars.”
Fletcher said the hope now is to make a bit of money back from its closing sale and potentially find a buyer for the property, but he admits he’s realistic.
Set to close in the coming weeks, Chuckles isn’t listed among the number of closures the city has seen over the first 10 months of this year, which has already reached nearly 5,600.
While the numbers likely won’t reach the 7,200 closures recorded last year, it will still likely be well above the normal annual average of about 6,000.
Even as business closures soar higher than normal, the number of new business licences issued continues at a breakneck pace. That’s a hopeful sign as the city slowly emerges from a punishing economic slump, said Calgary Chamber of Commerce spokesman Scott Crockatt.
“What we’re seeing from the chamber of commerce’s perspective is the numbers are similar to last year, but they’re showing continuous signs of improvement,” he said.
“While things certainly aren’t rosy, we certainly seem to be coming out of it.”
Alongside the 5,597 closures so far in 2017, the city has also issued 6,184 new business licences.
The chamber is set to release its latest business survey in the coming days, Crockatt said, noting that many share the same concerns: trying to grow their companies by finding new revenue streams while navigating a dizzying array of new government regulations, taxes and other hurdles that are particularly painful for small- and medium-sized businesses already enduring a slumping economic climate.
“Given the economy, I don’t think it’s surprising to see thousands of closures over the last two years,” Crockatt said, noting they’ve warned merchants to be ready for an extended period of low and slow growth.
“But we’re also seeing signs of optimism in the years ahead. Entrepreneurs are eternal optimists, and we’re definitely hearing from businesses that they have to work harder and be smarter to make money.”
But even for the most optimistic, the reality of operating a business in such a difficult climate can be daunting.
For 28 years, Peter Brown operated the Screech and Schooner Lounge and Tom’s House of Pizza at 3908A 17th Avenue S.E., maintaining a small but loyal customer base for the Newfoundlandthemed pub.
Earlier this month, Brown was forced to close for the last time, a sign on the door blaming a combination of city road construction, the economic downturn and the provincial government.
“Tom’s House of Pizza and the Screech & Schooner Lounge are now permanently closed due in part to the construction along 17th Avenue, the economic climate in Calgary and of course the NDP government,” read a typed sign on a plain sheet of paper on the business’s door.
“Pete and staff would like to thank all our customers for their support over the years and the many memories.”
Brown was still too distraught to comment on the closure, but friend and occasional performer at the live music venue, Bruce Wahlers, said while Brown made a valiant effort to keep the business afloat, he ultimately became victim of a death by a thousand cuts.
“When you’re getting hit from every direction, it was very much like he was playing a game of dodgeball, and he was the only one not holding onto a ball,” he said.
“I think the death knell for him was all the construction. He had regulars walking two blocks to get there because all the parking was gone.
“He’s a fighter and he’s a survivor, but at some point you just have to say, ‘I give.’ ”
Friends of the pub held a fundraising concert at the Screech and Schooner last month, Wahlers said, but the loss of access and the removal of his long-standing sign along 17th Avenue S.E. made it impossible to stay afloat.
“He was putting out an ungodly amount of money every month just to keep the doors open,” Wahlers said.
“Pete didn’t draw a salary from that place for years. He survived 28 years through the worst of it — it’s sad.”
Another long-standing Calgary business announced this week it would be closing. Catch restaurant on Stephen Avenue Walk posted a short message on its website that blamed the closure on the city’s economic climate.
“We wish to inform our many loyal customers that Catch & The Oyster Bar will serve our final guests on Friday, November 17,” the note read, in part.
“While we’re extremely proud of what this establishment has meant to Calgarians and the careers of many, it’s definitely bittersweet that the economic downturn made it unsustainable to continue.”
The city, meanwhile, has made efforts to help small businesses, launching a new online hub to help aspiring and existing business owners as well as enhancing services internally to streamline processes for merchants.