Struggling Neat Café pulls plug

The popular Neat Café in Burnstown closed its doors for an indefinite period on Sunday, putting 15 people out of work and pulling the plug on upcoming shows by acts such as Born Ruffians, Jeff Martin and MonkeyJunk.

Owner Adam McKinty made the difficult decision to suspend operations and put the building up for sale after the music festival he organized Sept. 26, Neat in the Woods, failed to attract enough paying customers to break even. Although the festival received rave reviews from all who attended, the turnout of about 2,000 people was about 1,000 short of what was needed to cover expenses.

“The costs of covering the debt of the festival and continuing the café were just going to spiral,” said McKinty in an interview in the stage room of the cosy 19th-century schoolhouse that’s helped put the village of Burnstown, an hour west of Ottawa, on the map. “We need to stop and figure this out and continue once it’s is clear. It’s a numb sort of thing.”

The café has been struggling financially for more than a year, a situation precipitated by McKinty’s divorce. He and ex-wife Kim Berry bought the building in 2008 to open a coffee shop and restaurant. By 2009, they were booking shows, bringing everyone from the Proclaimers to Buffy Sainte-Marie to the intimate, 80-seat space.

Early in 2014, McKinty and Berry returned from a vacation in France with plans to expand the business. However, problems arose and the 20-plus-year marriage deteriorated.

It didn’t help that folks in the village jumped to the conclusion that McKinty, who’s 48, was having an affair with the café’s general manager, Tori Arsenault, 27.

For the record, the two emphatically deny the rumours. They are business partners only. “There is no relationship,” said McKinty flatly.

“People assumed it because we work so well as business partners,” said Arsenault. “We have kinda turned that into a friendship but it’s nothing beyond that. It seems crazy that we to need to tell that to people.”

Earlier this year, McKinty was able to raise $187,500 by soliciting loans in $100 increments from patrons. The amount covered outstanding debts but was not enough to buy out his ex-wife’s equity in the business.

“If we went another month or two, it looked possible that we could no longer cover the debts with the assets,” said McKinty.

“It felt reckless to go down that path and risk other people’s money. Even if everything sold, they might not get their money back so we’re doing a full stop now.”

McKinty also hoped to be able to transfer the mortgages on the matrimonial home and the business from two names to one, but in 14 months, has not found a lender willing to make the switch.

“Now we’re at the point where I think the only way to split the assets is to sell them,” he said.

“We have to shut down and sell them now. That gets everyone paid off.”

The best-case scenario is that a buyer will be found who is willing to rent the space back to him so he can continue operating the café, he said.

“The plans after that are really vague because I don’t know how it would work, but it seems if we break it down and everyone’s square, building the business back up again seems possible,” McKinty said.

Shows at the café’s recently opened sister venue near Carleton Place, North on 29, are also cancelled although it will remain open for private functions, McKinty said.

No matter what happens to the Neat, McKinty and Arsenault are determined to mount the festival again next year.

The community support, as well as the response from fans and musicians, showed them it is a sustainable endeavour.

“Everyone is proud of the festival,” McKinty said.

“But how can we take care of the loss and keep running? This (closure) is going to be painful but for the long-term possibility of anything continuing, it has to happen.

“It feels like giving up is the wrong thing to do, and selling everything is essential."