Pandemic forces businesses to close

Published 6:00 pm Sunday, June 14, 2020

Downtown Grounds storefront from their Facebook pageDowntown Grounds, a locally-owned business in DeRidder, is one of many closing their doors after taking major financial losses during the COVID-19 pandemic.

Facebook: Downtown GroundsCOVID cases 6-13COVID cases 6-13

Source: http://ldh.la.gov

Locally-owned businesses in Southwest Louisiana continue to struggle to return to a state of “normal” this month, despite the state moving into phase 2 of reopening.

One such business is a home-grown coffee shop in DeRidder — Downtown Grounds, the fruition of a long-held dream business for owner and Beauregard Parish resident Dolly Weldon.

Weldon opened the store in 2016 to popular success within the community, but she said as the business hit its third year and a time when most new businesses begin to see the profits make the great turn from start-up costs to true revenue, the COVID-19 pandemic took a difficult toll on the shop.

“We tried, but in the end it was just too much to overcome,” Weldon told the American Press.

Weldon was forced to let go of her staff and close her lobby in March after the initial stay-at-home order was issued. After a few weeks she returned to work alone, operating out of the business’ small drive-thru window that looked out on the corner of South Pine Street and West 1st Street, just in view of the Gothic Hanging Jail.

Despite its prime location at the corner of the city’s historic district, Weldon said the revenues just weren’t there. This week, Weldon replaced the shop’s “Open” sign with one that declared it “For Sale.”

“We tried to hold out until business picked back up, but we simply ran out of money. We were seeing around an 80 percent drop in sales. As people began to return I brought back my staff, but we have so much more to pay than just payroll. It was just more than I could do,” she said.

Weldon’s peril is nothing unheard of in small communities that continue to struggle to stay above water during the state’s recovery.

This week it was announced Pitt Grill in Sulphur has closed its doors after 45 years and Hackett’s Cajun Kitchen in Lake Charles closed its doors last month. Both businesses cited the impact of the pandemic on not being able to continue to operate.

Beauregard Parish Chamber of Commerce executive director Lisa Adams said her office has been visited by members and non-members alike recently, as business owners seek out information on what options are available to them to avoid closure.

“It is a scary and difficult time for local business owners right now, but we are sharing information as soon as it becomes available from the state to help them stay educated on the programs that are available to them. We also keep information here at our office for those who come in; we are not turning away any business owners whether they are a member or not,” Adams said.

Based on the latest information provided through the Louisiana Economic Development office, only $510 billion in loans out of the $659 billion funded by Congress has been approved, meaning nearly $149 billion still remain available for small business owners in the state through their local financial institutions.

The state has also extended the expense forgiveness period for businesses from eight weeks to now 24 weeks. “While it may not be the answer for all business owners, we have had a few here who have been able to keep their doors open through these programs,” Adams said.