The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

An “iconic” 92 year-old Palmdale-based furniture retailer yesterday revealed it was assessing the “possibility” of closing down by year-end, causing the potential loss of 20 jobs.

Greg Roberts, whose family owns Home Furniture, told Tribune Business “we think we may” close this year, having mulled such a move in previous years due to the bad economy and resulting financial losses.

Mr Roberts, though, denied suggestions made by Tribune Business sources that Home Furniture was contemplating closure because of the added burden being imposed by Value-Added Tax (VAT) related implementation and compliance costs.

“We’re not looking at closing because of VAT. That didn’t have anything to do with our consideration. If business had been good, it would have been a different story,” he confirmed to this newspaper.

“Each year we look at the possibility [of closing], because business has been bad for the last four to five years.”

When asked if he and his family were looking at closure at 2014 year-end, Mr Roberts replied: “We’re thinking we may, but have not laid-off staff yet. There’s always the possibility we may continue in business

“I’m not able to say [definitely] at this point. It’s a possibility, but not necessarily. It’s up in the air. The economy has been depressing for the last couple of years, and our business has been suffering as a result.”

Mr Roberts was unable to say how far business volumes had declined compared to pre-recession levels, but added: “Everyone realises business has been down the last couple of years.

“We kept hoping each year it would come back, but it has not come back this year. You can only lose money so often.”

Tribune Business sources expressed dismay that the Roberts family may be mulling Home Furniture’s closure, noting that the Palmdale Shopping Centre, Madeira Street-based business had been a long-time staple in the private sector.

“They’ve been there for ever. It’s an iconic business,” one source said. Another added: “They’ve been around for 100 years, man.”

Mr Roberts confirmed that Home Furniture was in its 92nd year, having been founded in 1922.

The furniture/appliance business has been hit-hard by the recession and subsequent slow Bahamian economic recovery, which have already resulted in the prior closure of at least one other retailer in the sector.

With incomes down and unemployment up, many consumers will have deferred purchases of furniture and household appliances, viewing them as ‘luxury goods’ they can postpone decisions on.

Although VAT is not the prime factor in Home Furniture’s deliberations, private sector sources, speaking on condition of anonymity, said its impending implementation would lead to a further ‘shake-out’ among Bahamian businesses.

While VAT implementation and compliance costs might not cause business closures by themselves, Tribune Business’s contacts said they would further aggravate the problems facing companies already ‘on the edge’.

And they pointed out that the requirement businesses come into compliance with Business Licence and real property taxes, and National Insurance Board (NIB) contributions, before they can complete VAT registration, might create a wall some owners are unwilling to climb.

“Quite a few businesses will be closing their doors,” one source said. “It forces another issue: Persons registering for VAT have to be current with other taxes, and investors may say it doesn’t make sense to pay for that to happen.”

They added: “I hope they [the Government] understand the impact this is going to have on the economy.

“You really don’t do an initiative like this in the middle of a recession. On the spending side, there’s no end to it. The Government is really ramping up.”