LIHU‘E — The year 2011 was the year of business Darwinism — the strong survived and the weak disappeared. “The small business sector of our economy provides jobs,” said George Costa, director at the county Office of Economic Development. “To
LIHU‘E — The year 2011 was the year of business Darwinism — the strong survived and the weak disappeared.
“The small business sector of our economy provides jobs,” said George Costa, director at the county Office of Economic Development. “To some degree, government and the visitor industry is responsible for a number of jobs on Kaua‘i, but it’s the small business, the entrepreneur, those who see a need and create a business to fill the need are the ones that can affect the job market on Kaua‘i.”
The fallout of the Great Recession hit Kaua‘i hard, causing countless closures, bankruptcies and buyouts. But like spring blossoms after winter, many new businesses bloomed on the Garden Isle.
Borders close
In February, Borders announced its Lihu‘e location was on the chopping block as part of Borders Group’s bankruptcy reorganization process. The chain closed 200 of its 642 bookstores and laid off 6,000 of its 19,000 employees. The closure of Borders at Kukui Grove Center put more than 40 employees out of work. Seattle’s Best Coffee located within Borders also closed.
Other closures included two Cold Stone Creamery shops.
Coconut Marketplace
Long-time Coconut Marketplace tenants began to disappear early in the year, including Aloha Kaua‘i Pizza, Tradewinds, Island Fever, Animal Land, Tropic Casuals, Kaua‘i Shades and Hats, Garden Island Clothing and Island Jewelers.
Tenants waged a rent strike when their requests for rent reductions, because of the recession’s deep impact on tourism and consequently sales, went unanswered by CB Richard Ellis, tenants said.
CBRE manages the property, but there are no owners of record, because Credit Suisse bundled the center’s $32 million mortgage into a commercial mortgage-backed security made up of 238 fixed-rate loans on 278 multifamily and commercial properties throughout the U.S.
Times buys Big Save
In May, Kaua‘i’s only homegrown grocery chain announced it had sold its stores after 85 years of family ownership to Times Supermarket chain. Times took over the Kapa‘a, Hanalei, Koloa, ‘Ele‘ele and Waimea Big Save stores but kept the Big Save banner. The Lihu‘e Big Save closed in July.
Blockbuster bugs out
In mid July, Blockbuster video store in Kapa‘a received a notice from corporate that it was to close within mere hours, the result of a bankruptcy protection filing in September 2010. In all, more than 1,000 locations closed nationwide. The Blockbuster in Lihu‘e at Kukui Grove remains open.
Del’s Feed and Farm closes
Del’s Feed and Farm Supply in Lihu‘e sold off its inventory and closed its doors in July. The store’s manager said the closure was because of the high lease rate of its warehouse in Puhi.
Kapa‘a Pizza Hut
Pizza Hut in Kapa‘a relocated from its Waipouli Plaza location of 26 years to share its sister company Taco Bell’s space about a quarter of a mile north on Kuhio Highway. Its new location was scheduled for launch in August.
New businesses
Mark and Candice Myers, owners of Waipouli’s Trees Lounge, opened Rocco’s Pizza in Harbor Mall. It’s Lihu‘e’s only independently owned and operated pizzeria, the couple said.
An Old Koloa Town treasure emerged from behind the main thoroughfare’s tall guinea grass with new purpose as Koloa Town Salon in August.
In September, Dustin and Kirby Dillberg opened Pain Free Kaua‘i a holistic, non-pharmaceutical pain management clinic, across from Kukui Grove Center in Lihu‘e.
For new or struggling businesses, Costa said OED and the Kaua‘i Chamber of Commerce are available to assist.
“Kaua‘i Made is a great example of the county’s effort to market Kaua‘i companies and provide them with opportunities for exposure that they not have had on their own,” he said. “The Kaua‘i Made program continues to flourish. Currently we are in the process of enrolling roughly 20 new members for 2012 and just launched a Facebook page and revamped the website to provide greater exposure for members.”
OED may be found at www.kauai.gov/oed and the Kaua‘i Chamber of Commerce may be reached at 245-7363.
• Vanessa Van Voorhis, staff writer, can be reached at 245-3681, ext. 251, or by emailing vvanvoorhis@thegardenisland.com.
