Showing posts with label bankruptcy. Show all posts
Showing posts with label bankruptcy. Show all posts

Wednesday, November 11, 2009

Garden District's Long-Term Future Uncertain

Last week, the Garden District--the 14th Street nursery and plant lover's paradise--filed for Chapter 11 bankruptcy, leaving its future on 14th Street cloudy.

According to Garden District owner Joe Carmack, the store will remain open through Thanksgiving and Christmas (where sales of trees typically provide a needed end-of-the-year boost).   According to Carmack, "Christmas is always an exciting and busy time here, but after that who knows."















Carmack noted that "the economy has definitely impacted our business a lot." The Garden District recently consolidated their operations into a single location across the street from their former space at 14th and S streets, which will help reduce the store's overhead.

As far as the long term future of the store, Carmack indicated that is first priority would be for the store to remain open for business, but that he couldn't rule out the store's potential closure. Under Chapter 11 bankruptcy reorganization, the U.S. Trustee's Office can shutter the store should payment terms not be met. And the ability to make payments, naturally, depends upon the volume of sales.

Garden District's problems will not affect the pending opening of "Crepes on the Corner," Carmack's new gastro-venture at the former garden District location.

The loss of a longstanding institution (the store was opened in 2002) would be a tremendous blow to the 14th Street retail establishment. However, sources have indicated that it is unfortunately not the only popular retailer along the corridor that is facing financial difficulty.

With the continued troubles of the economy, and commercial lease rates along 14th Street continuing to climb, it will become increasingly challenging for small, local retailers to survive. Thus, it's up to the residents and patrons of neighborhood businesses to do their part to ensure that local establishments remain viable. A truly vibrant commercial corridor means having more than bars and restaurants, however great those may be. It means having a mix of businesses that cater to a variety of needs and interests. Unfortunately, the news for some of our local businesses is grim, which threatens to create an increasingly large hole in our retail scene.