Pinched By Pandemic: North Texas Businesses Struggle To Pay Rent, Stay Alive
NORTH TEXAS (CBSDFW.COM) - Pinched by the pandemic, local businesses are struggling to make ends meet and pay the rent on time.
Over the weekend, Lizard Lounge, an iconic Deep Ellum nightclub, announced it will be closing its doors after 28 years.
Owner Don Nedler said the costs of maintaining the nightclub became overwhelming during the shutdown.
"It forced us to make some hard decisions," Nedler said. "It's very expensive to keep this property sitting monthly."
It's been a rough week for North Texas businesses.
Redemption Barbershop in Rowlett discovered the locks had been changed after receiving a "failure to pay" notice.
The barbers were forced to temporarily relocate to another spot in Rockwall.
Hoffbrau Steak and Grill House announced it would be closing its Fort Worth location after being unable to reach an agreement with its landlord.
Nedler knows these struggles all too well.
"You have to look into your crystal ball and ask yourself, do we want to pay to stay here another month?" Nedler said.
But the pandemic has also posed problems for landlords and property owners.
"Landlords have mortgages they have to pay," said Steve Williamson, the managing director of the retail services division for Transwestern, a private real estate firm.
Williamson said innovation is what will help businesses survive in the long run.
"Is a landlord giving them free rent for several months, will that save them if they have a bad concept? No," Williamson said. "But if they have a good concept, it could help them over the hump."
Nedler is already thinking to the future. But even he admits a Lizard Lounge 2.0 would need to operate on different terms.
"When we do reopen, I think we will reopen in another world," Nedler said.
