As New York becomes the epicenter of the COVID-19 pandemic in the US, even diehard businesses are shutting down in the so-called “city that never sleeps.”
The losses add to the economic toll from the crisis in the US, which is fighting the largest coronavirus outbreak worldwide, causing a record spike in unemployment claims and posing special risks for small businesses.
Biscuits & Bath, a dog daycare and boarding company, on Friday announced that it would temporarily shut down and lay off most of its remaining employees.
Photo: AFP
“We believe this is the best and only way to keep everyone safe,” Biscuits & Bath owner Scott Smith said in a letter to clients.
Gaetano Arnone, executive chef at Otto Enoteca, briefly revamped the restaurant into a delivery-only operation before pulling the plug.
“Last night we did US$400,” Arnone said by telephone. “It’s just not enough to keep everyone employed and safe.”
The two companies are emblematic of the small and medium-sized businesses that are considered most at risk as officials in New York City and other jurisdictions shutter economic activity in an effort to try to limit the deadly contagion.
The crisis has fundamentally transformed business conditions for just about every US company, darkening Apple Inc’s stores, halting auto production at General Motors Co factories and fueling massive demand for grocers, e-commerce delivery services and companies that manufacture toilet paper and hand sanitizer.
However, nonpublic companies are viewed as an especially vulnerable node in the US economy because they typically lack the access to capital of bigger outfits.
A US$2 trillion relief bill signed into law on Friday boosts unemployment compensation and provides IS$350 billion in forgivable loans to cover small business payroll and overhead, including the rehiring of laid-off workers.
Officials from the administration of US President Donald Trump have said that the money would be available immediately, but experts are skeptical that banks have enough staff to process the loans quickly, or that the US Small Business Administration would be able to ramp up fast enough in a country of 330 million people.
“Small business needed assistance not today, not yesterday, they needed it two weeks ago,” said Adam Levitin, a Georgetown Law School professor specializing in bankruptcy.
“Until we have some sense of when the virus will be contained, there will be too much disruption for small businesses to really get back on their feet and operate normally,” he said.
In New York, the coronavirus’ effects on the economy have been like a boulder that gets bigger as it rolls ever-faster downhill, leveling more of the city’s stores and services.
Biscuits & Bath marketing and sales manager David Maher said that the company was committed to providing service.
It had been categorized by New York state as an “essential business” because it was caring for dogs of hospital workers and first responders, as well as coronavirus patients under quarantine who need their dogs walked.
“If I’m a doctor or nurse and ... I’m cleaning up pee and poop and a mess, that’s going to add to my stress and make me less effective at my job,” Maher said, as a persistent basset hound led a yapping chorus behind him.
However, Maher added that the company was calculating daily costs and revenues in New York’s deteriorating conditions.
By Friday, it realized that it could not go on.
“We had no other choice,” Maher said.
He and his colleagues had begun offering clients alternative lodging.
The company had already trimmed head count in half to about 110, but the latest move would leave staff at 37, Maher said.
Otto Enoteca, part of celebrity restaurateur Joe Bastianich’s empire, had in the past few weeks seen a steep drop-off in reservations even before New York City shut restaurants for dining, but permitted takeout.
“You saw reservations dropping and dropping and dropping... It’s like watching the stock market,” Arnone said at the quiet restaurant.
Arnone’s wife lost her job with a Manhattan hotel — another hard-hit industry. The couple had been on his wife’s company healthcare plan, a typical arrangement in the US.
Having already laid off most of its 45 staff, Arnone pared the menu at the Washington Square spot down to hearty pastas and pizzas, “comfort food” for a stressed-out moment.
However, after three days, Arnone concluded that the plan was unworkable.
“I just can’t sustain it,” he said, adding that his immediate plans include filing for unemployment benefits, staying home with his wife and joining volunteer motorcyclists ferrying medical equipment to hospitals.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to
RSS