By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
A Bahamian dry cleaning chain says that to remain “viable” it may have to look at laying-off some of its 114 employees in the next “three to six months” if sales continue to decline at June’s pace.
Lana Lee-Brogdo, New Oriental Laundry & Cleaners’ president, told Tribune Business: “June was very soft in the business we’re in. We have got VAT coming in and it’s going to kill our sales really.
“We’re having to make a lot of difficult decisions. We were able to ride through the initial recession with no layoffs by increasing efficiencies without affecting jobs or doing anything drastic, but this is the first time we are now having to look at a plan as to how we are doing to reduce the number.”
She added: “We want to be a company that is viable in the next year. VAT, the minimum wage increase, national health insurance, it’s just too much. The businesses that do not reduce and become more efficient are not going to be viable.”
Mrs Brodgon’s comments come more than a year after competitor Spotless Cleaners closed its doors permanently, leaving 42 persons unemployed.
That dry cleaning chain said the economic climate had played a large role in its decision. Jiffy Cleaners, another dry cleaning chain, was likewise forced to shutdown in 2011 due to tough economic times, exacerbated by roadworks that impacted its operations.
“If our sales drop like they did in June, if that trend continues we have to make changes in the next three to six months, we have to adjust and, unfortunately, it’s going to mean getting smaller, becoming more compact. Right now we have 10 locations, 114 staff,” said Mrs Brodgon.
She added that most of New Oriental’s customers are hotel employees, and any slowdown in that sector would have an immediate impact on business.
“Tourism obviously affects everyone. A lot of our clientèle work in tourism and when they’re on two and three days that has an affect on our business. We have direct accounts with the hotels as well,” Mrs Brogdon added.
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