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| Economy overwhelms businesses |
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| Owners respond with layoffs, closures |
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 | | Photo By Susan Matheny | | Original Burger Works closed its doors in October. |
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By Holly M. Gill and
Susan Matheny
On a quick trip through downtown Madras, it's hard not to notice the empty storefronts, or signs of business troubles.
From the closure of restaurants, such as the Apple Peddler on the south end of town, to businesses such as the World of Treasures that are in the process of shutting their doors, evidence that consumers are cutting back is widespread.
"Unfortunately, in our business climate, some are going to lose and some are going to win," said Holli Van Wert, executive director of the Madras-Jefferson County Chamber of Commerce. "People are doing what they absolutely have to to keep their doors open."
"In retail, you have to have a decent bottom line in order to pay all the overhead and meet the monthly obligations," she added.
Wayne Pearson, the new economic development manager for the county, expects to work with the chamber to bring new business and industry to the county.
A 12-person Industrial Advisory Board is setting the agenda and overseeing Pearson's work, which will include taking inventory of all the local land zoned for industrial development.
Pearson said he will be concentrating on bringing in industry, since the chamber focuses more on business.
"There is activity in terms of companies looking to expand in this area," he said. "Even in a down economy, there are companies looking around."
"The thing we don't want to do is turn anyone away," Pearson said. "We're going to talk to them and get them plugged in to the right sources." | | Photo By Susan Matheny | | Radio Shack plans to close in early December. |
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Radio Shack to close
"A down economy shakes things out," said Rick Allen, businessman and former local official. "In this one, there's no one immune. This is a correction that's hurting people."
Allen knows firsthand what it's like to have to close a business. Radio Shack, long a fixture in Madras, is set to close by early December.
Citing the general decline in the economy as a factor, he noted, "Consumer electronics is one of the first things that goes when you don't have any disposable income and credit cards are maxed out."
The economy isn't the only factor causing the closure, said Allen, who accepts some blame. "It needs an owner/operator as all small businesses do."
Because he wasn't able to run the business himself, he had to hire a manager, which increased his costs, he pointed out, adding, "No one watches over their business like an owner."
The changing marketplace is a third factor in the closure.
"Radio Shack is a brand and a concept that, because of consumer buying habits, product and competition, has struggled to find their niche in the economy," he said.
Nowadays, people find that it's less expensive to buy new than to repair some electronics. "Radio Shack's bread and butter was parts and pieces," he said. "Now, it's a circuit board that you throw away."
Inventory at Radio Shack is already discounted 25 to 35 percent, but after Thanksgiving, Allen expects that to increase to 50 to 60 percent.
"We hope to be out the first week of December," he said.
Raining Fresh Daisies
Peggy Boyle and her daughter Jennifer Oppenlander opened Raining Fresh Daisies, a scrapbooking store, in May 2004, and had considered it successful until this year.
"About the time the gas prices went way high, things went in the tank," said Boyle. "Even the regular customers cut back; the media has everybody scared."
"If someone had told me a year ago today that I'd be closing my doors, I would have laughed at them," she said.
When Oppenlander got a part-time job teaching this year, Boyle decided it was time to close up shop. "I've said I wasn't going to do it alone."
The business will close Nov. 22 -- before the holidays, "Mainly because, for me, the outcome is going to be the same," said Boyle. "I'm going to go home and enjoy the holidays."
With the economy as it is, she believes that many people are cutting back on their hobbies. "This is the kind of business where gathering of the product is part of the fun of it," she said. "I think people have a stash at home, and they're using it."
Boyle has not yet determined what will be done with the business. "I'm taking it kind of a day at a time," she said. "More than likely we'll put it up for sale."
"If I was willing to hang on for a year ..." she began, and trailed off. "But it could be five years."
The Grind
At the first of September, The Grind Board and Bike House closed its doors after a little less than two years in business.
Sid Widmer, who owned the business with his wife Melanie, said his lease was up and "the customer base wasn't that great."
Besides economic factors, he decided that, "Madras is a weird place for fashion and extreme sport lifestyle stuff."
The Widmers also own Madras Sanitary Service, and found it difficult to run two businesses, he said.
Another contributing factor was the fact that the business experienced seven break-ins. "We got kind of tired of it," he said. "It wasn't really one reason." | | Photo By Susan Matheny | | The Stag closed its restaurant, but kept open the lounge. |
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The Stag Restaurant
Hand-lettered signs at The Stag Restaurant and Bar inform customers that the caf‚ is closed, but meals are still available in the bar and lounge.
Owners Bobbi Wheeler and Skip Ahlson purchased the business in February 2008, and had to downsize to stay afloat.
"The restaurant hasn't paid for itself in years. I bought the business on the day of the big layoff at the Bright Wood mill. And right after that, Keith Brown's lumber store closed, then gas prices started to zoom," Wheeler said.
"I think we haven't hit the tip of the iceberg yet -- there will be more closures. But I think things will come back if we operate on a day-to-day basis," she said.
The good thing, she noted, is their livelihood doesn't depend on the business, since they're both retired and have retirement income.
"I just wasn't ready to retire, and now I'm working 16-hour days," she said, noting they open at 6 a.m.
"We closed the caf‚ side on Aug. 5, but kept the bar side open where people can come gamble and we still serve food all day. We took out the big menu and put in two sensible ones for lunch and breakfast. We still have the same group that's been coming here for 46 years to drink coffee in the morning," Wheeler said.
She said it was hard to make the decision to lay off seven employees, but it was either that or lose the whole thing. They now operate with five workers, besides themselves.
The bar is open seven days a week, from 6 a.m. to midnight, except for Sunday and Monday when it closes at 10 p.m.
"I intend to open the caf‚ side back up as a `cater a date' business, but it will be closed to minors," she said.
Wheeler, who also cooks, explained, that people could call when they have an anniversary, birthday, etc., and arrange to have her cater it at The Stag. "I'll order flowers, special steaks or seafood, and wine, but at a lower cost than what they'd spend in Bend."
Wheeler said she's lived through these kinds of downturns before. She and her parents owned gas stations and beauty salons in Lebanon when that community's mill shut down. Their businesses survived that and also, a gas crunch in the 1970s.
"We'll make it through this. Madras will come back. And I'll do what I can for as long as I can," she said.
World of Treasures
Shawn Wallace, of Redmond, made the decision to close World of Treasures antique and used furniture store when sales dropped 70 percent during the past year.
"There were no customers coming in the door. There were days we'd sit there and not see a soul," he said, adding, "It's been a tough year for everyone, but Madras felt it earlier than most."
The store is now open four days a week until stock is liquidated, since he has found a buyer for the large downtown building.
"We sold it for a lot less than we put into it, just to get out of it," he said, not revealing the buyer's name, only that "an investor" had purchased it.
Wallace has already gone on to other ventures. He purchased the Kayo's Roadhouse restaurant and lounge in Redmond, remodeled it and renamed it "Rumors."
"We have the largest dance floor in Central Oregon with live music or DJs, prime rib seven days a week, and nothing on the menu over $20," Wallace said.
He and his wife also own "Cottage Treasures" home decor shop in Redmond.
Unfortunately, Redmond's recent highway bypass has not been good for business. "We lost 50 percent of our customers after the reroute," Wallace said.
Apple Peddler
The Apple Peddler Restaurant in Madras shut its doors Nov. 5.
Owner Carl Wheeler of Jacksonville, Ore., did not return calls, but a receptionist at the head office said the restaurant closed due to the downturn in the economy.
The restaurant had employed two full-time and 14 part-time Madras workers.
Wheeler owns seven other Apple Peddler Restaurants, but none of the others has closed, the woman said. The property is now listed with Lowes Commercial Properties in Bend. | | Photo By Susan Matheny | | WeBeGames closed in November. |
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WeBeGames
Young entrepreneurs Jason and Rose Hagen recently had to close their WeBeGames rental store, just eleven months after opening.
"We weren't making enough money to stay open, so I have to take a job to pay the bills," said Jason Hagen, whose wife works at Erickson's Thriftway.
He had applied for a job with his former employer CitiFinancial, but learned on Friday that the company was closing branches instead of hiring people.
"At this point, I'm going to try to find something else, or maybe go back to school," Hagen said.
Burger Works
The Burger Works (formerly Buff Drive-in), which has been a Madras landmark since the 1960s, flipped its last burgers Oct. 23.
Owners Phil and Twyla Rice said the economic downturn cut their business in half.
"Because of the slowdown in business, it was really more than we could handle to make payroll or pay bills," Twyla said.
Oddly, the Redmond bypass also affected the Rice's restaurant.
"I lost my billboard in Redmond this summer when they put the new overpass in. I never realized until then how much business it was bringing me," Phil said, adding, "Then it took Redmond City Council five to six months to approve moving the sign, and by then I was broke."
He said they were down to five employees when they closed, and are now trying to find a tenant for the building.
Making changes
To survive, some local businesses are finding it necessary to make changes.
"I'm changing my hours constantly," said Ramona Freeman, owner of the Curves fitness center.
"The last three months, I've lost 58 people," she said, noting that she has just over 100 customers left.
Freeman is determined to keep her business open. "I'm doing everything in my power, because I think this club is really good for a lot of people, and I feel passionately that these women need a place to go," she explained.
"The reason I feel passionately about it is I lost my mom a little over three years ago, and she was morbidly obese," Freeman continued. "I think she would have benefited from it."
To encourage people to join, she is offering a 50 percent discount through Dec. 17. The business, located next to Bi-Mart, is open Mondays, Wednesdays and Fridays from 6 a.m. to 1 p.m., and 4 to 6 p.m.; Tuesdays and Thursdays from 6 a.m. to 1 p.m., and 4 to 7 p.m.; and Saturday from 7 a.m. to noon.
Save Our Store
Ed Gutowski, the owner of Pelican Shoes, just north of Curves in the Bi-Mart shopping center, sees a community that is hurting.
"Here in Jefferson County, things were getting tough before the big downturn," he said. "Seaswirl left, Bright Wood and Warm Springs laid off people."
Over the summer and through October, Gutowski ran an S.O.S. sale -- Save Our Store -- with 30 percent off a large selection of shoes.
This month, he's advertising a 10 percent discount on shoes, with an additional 10 percent on Tuesdays. "What I'm doing is spinning my wheels," he said. "I'm not moving forward."
To broaden his customer base, Gutowski offers exceptional customer service. "I spend the time to help them get comfortable; I don't charge any extra for that."
Formerly a food stamp worker, Gutowski is giving it until May to decide if he will keep the store open, or go back to his previous work.
He hopes to keep the business open. "I have a wonderful regular client base," he said. "They always check with me first."
The store carries well-known brands of shoes and boots for all ages, including Clarks, Converse, Keds, Heeleys, Skechers, and Wolverine. "I will gladly order anything you need," said Gutowski.
Construction slow
Because of a slowdown in home construction, business has slowed at Parr Lumber, where manager Mark Mobley found it necessary to lay off two employees.
"It was extremely hard to do," he said. "I think that's the end of the layoffs, but not the end of the slow times."
A full-service lumber yard, which offers cabinets, doors, windows and appliances, Parr Lumber recently added sidewalks and trees along U.S. Highway 97 in front of the business.
"We're buckling down and having a good time," said Mobley, who remains upbeat. "It's slowed down, but it's not too bad. We're still busy."
Chamber director Van Wert thinks that the community has likely seen the last of the closures. "If anything else happens, what it will be is reduced hours."
With the holiday season approaching, she is optimistic that business will pick up. "Remember to shop locally when you can because it's our friends and families who are running the businesses and who need assurance that they'll get through the hard economic times."
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