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40% of small businesses in danger of closure: "For us, the third closure is destruction"

The government decision re-flooded the frustration of business owners, who did not expect to have to close less than two months after the previous opening.

Some say they have not yet received the aid grants, others argue that politics involves politics, and all are trying to find creative solutions.

"Another closing and the story is over"

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• Clasp

• Business

• Stores

• Corona virus

Sonia Gorodisky

Thursday, 24 December 2020, 22:28

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In the video: After 8 weeks, the street shops opened new (Photo: Niv Aharonson, Editing: Amit Simcha)

The government decision tonight (Thursday) to impose another closure re-flooded the frustration among business owners.

They saw the morbidity rising, but none of them expected it to come so quickly.

Street shops, most of them small businesses that opened only a month and a half ago after being closed for two months, are still trying to recover from the previous closure.

"Bibi and the government brought vaccines to our country, but they shot us in the head," said Meir Kochav, owner of a chain of fashion stores and a wholesaler.

"No one is considerate and no one cares. I took out state-guaranteed loans, which I will soon have to repay, I do not know how I can do it. I will have to take my employees out to the Knesset again."

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A street store in Rishon Lezion after the second closure, last month (Photo: Reuven Castro)

The proposal approved by the ministers

• Closed for two weeks from Sunday at 5 p.m.

• Extension for another two weeks in the absence of a decrease in morbidity

• Restriction of movement of one kilometer from home, except for vaccination

• Prohibition on staying in another person's home

• Classes in grades 5-10 will be discontinued

• Closing of places of trade, entertainment and leisure

• Stopping the outline of the Green Islands

• Work in a 50% format in businesses that do not receive an audience

• Limit gatherings of ten people indoors and 20 in the open

• Reducing public transportation to 50%

Kochav employs about 14 workers who will now have to go to the Knesset again. In an interview with Walla! NEWS held on the day the streets opened, Kochav said his biggest concern is the third closure. "I am afraid today to order winter clothes.

Two more weeks can come and tell me that there is another closure, and what will I do? ", He asked. Unfortunately, his concern came true.

Kochav is still left with stock from the summer that he did not have time to sell following the first two closures, Apart from the loans, he did not receive assistance grants from the state, and the appeal process he filed takes up to 120 business days. Despite everything, he promised not to give up a business that has existed for 40 years.

According to research by Dr. Ruby Nathanson, economic advisor to the Israel Independent Chamber (Israel). Lahav), at the end of November about 40.7% of businesses with 10-5 employees reported that they might close.

This figure was obtained even before the decision on the third closure, which at the time seemed like an unlikely scenario.

More on Walla!

NEWS

Store and mall owners fear tight restraint, declaring "We will not close again"

To the full article

Parking lots will be closed for the third time, and the damage will be double (Photo: Reuven Castro)

Eitan Banyan, who owns a textile store on Jaffa Street in Jerusalem, also shares the view that the third closure is a fatal blow to small business owners.

"The third closure for me is destruction. I usually give checks to suppliers for a few more months, so what was three to five months ago will be reflected tomorrow-the day after tomorrow. It could put me in a deficit of another 80,000 shekels, and I already took out a loan. In the amount of one hundred thousand shekels in the state guarantee, "he said.

He added that "the economic damage is fatal. They need to understand us. In my opinion, this is a lot of politics involved in decision-making. It is true that the Ministry of Finance says the closure is serious for business, but there is probably a matter of wars - a stronger minister can do more."

Banyan fails to understand the decision to close the street shops as well.

According to him, it is not from them that the increase in morbidity comes.

"We want to continue to provide service from the outside, so that customers do not enter the store and wait outside. So that there is some movement and at least breathing space, we will do a few more shekels a day to reduce the damage."

The economic damage is fatal.

Castina Junction Big Shopping Complex (Photo: Reuven Castro)

Chen Bar-Oz, a business owner in the rental apartments and one of the leaders of the "I am Shulman" movement, said that in the past he had another store, which closed because it was on the route of the light rail works and suffered a fatal injury.

"The third closure for him is a double-edged sword. Businesses that are already dying, people who are opening up all their savings all this long period, are now already exhausting all the reserves they had. Some are on the light rail works route, so the damage is double."

After closing the store, Bar-Oz was left with a hotel and apartment rental business, which is far from flourishing in the past year.

"Once the closure is announced, people cancel. They will also not come to buy in the store because they have limited them to a thousand meters. We have dropped revenues by 100% since the first closure was announced, but we made a change and started renting apartments to those who need insulation and can not be home," he explained.

"It's not a stable thing. We were cheap at first, but now we're in a state of survival. Another closure like now, and the story is over," he added.

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