Halifax Businessman Stuck In Barbados Calls Situation “Catastrophic”
HALIFAX- Scott Colwell, like many other Halifax businesspeople, is being forced to close operations and lay off staff, due to the unprecedented situation caused by the coronavirus pandemic.
But the owner of Certainly Cinnamon Catering and the Wooden Door Bistro restaurant has the added misfortune of being stuck in Barbados while having to face these difficult business decisions.
“We are effectively closed; Almost zero income now. We have bills still to pay, suppliers to pay, taxes to pay, loans to pay. Catastrophic is a mild word for what I am expecting,” said Colwell, who will have to lay off his 50 employees.
“Our hotel restaurant is only offering room service now but that will also grind to a halt as no one will be traveling after this weekend. We will completely shut down after that.”
Despite being in Barbados, Coldwell has been able to stay in contact with his general manager through the internet and make company decisions. He has been trying for weeks to get back home to Halifax, but that has proven to be another difficult task.
“We had to ditch our return flights and buy tickets online to get out of here Saturday; cost a fortune. At this point we just want to be home,” said Colwell.
“We started our exit strategy a few weeks ago but it was impossible to get in touch with airlines. Then when all the flights started getting cancelled, it was even worse.”
The federal government has been urging Canadians abroad to return home quickly while restricting entry for non-residents. People who are just arriving from abroad are being asked to self-isolate for two weeks.
Colwell now must figure out how to deal with his bills and taxes, with no cashflow coming in. He has already reached out to his biggest food supplier, to tell them of his situation.
“We now will have zero money coming in. At the end of the month I have upwards of $15,000 in rents and bills to pay, not including paying all the suppliers; absolutely catastrophic,” said Colwell.
“Hopefully bailout packages will be announced soon.”
On Friday, the federal government announced that $10 billion in credit will be available for businesses hit by the pandemic. But Colwell doesn’t think taking on more debt is a good solution.
“That doesn’t help as it’s just adding to our already bursting debt load,” said Colwell. “You have to understand that we in the food business have to make enough to carry our business through the winter. We try to buffer our bank accounts until spring where people start going out again.”
“So, imagine now we have to pay all of February purchases and not a dime coming in. I personally will have to cover this.”