Victorian businesses forced to close because of Covid

More than half of all Victorian small business owners fear they will be forced closed from ongoing restrictions — these are the ones that have already met that fate.

More than half of all Victorian small business owners fear they will be forced to shut their doors because of the toll of ongoing restrictions.

New figures have found that while 55 per cent of business owners are concerned about their survival, 60 per cent are continuing to face revenue decline — and 65 per cent have made no profit during the current lockdown.

The research, by ACA Research, has also found 54 per cent of businesses are likely to either close their business down or substantially reduce their operations and 61 per cent have either reduced staff hours or sacked employees.

It comes as a Saturday Herald Sun survey of Melbourne’s most popular shopping and retail strips show they have become increasingly empty as business owners close their shops for good.

At least 14 shops were empty at the Prahran end of Chapel Street while in Hawthorn more than a dozen stores were empty across just two blocks of Glenferrie Rd.

In the CBD there were nine empty shopfronts on Bourke St near Parliament House.

Suburban businesses have also felt the affect of ongoing lockdowns, crowd restrictions and a struggle for rent relief.

These are the businesses hit hardest by Covid lockdowns.

Ringwood's Orange Whip closed permanently in April. Picture: Orange Whip Instagram.

ORANGE WHIP

Ringwood nightclub

Orange Whip closed its doors in April after 14 years of operation.

The club’s last big party, which it had planned in late May, didn’t even happen after another snap lockdown was announced.

Andrew Joyce, one of three former shareholders in the club, said the virus outbreak had cost them $500,000 in lost revenue since they took over in 2019.

“We couldn’t keep going through with it … we lost a lot of money,” he said.

“It became a battle in keeping customers happy and abiding by Covid-safe rules, and that made it hard for customer relationships.”

Matt Lanigan from the Lucky Penny on Chapel Street. Picture: Nicki Connolly.

LUCKY PENNY

South Yarra cafe

Lucky Penny was a popular weekend brunch hub with an in-demand function room and rave reviews online, but four lockdowns were too many for the Chapel St venue.

Owner Matt Lanigan said the business transformed in a bid to keep its entire staff in work, but the pressure of repeated rent deferrals reached a tipping point in March.

“After the Valentine’s weekend lockdown we decided it was time to call it quits,” he said.

“JobKeeper basically propped us up – but instead of being able to benefit from it by reinvesting in the business, it was like we were on life support and being drip fed so people just had food on their tables.

“We basically turned into a grocery store … we had a crack but it was really just to pay the bills and keep the guys employed.

“We didn’t have any support really – no support from the landlord except for the deferred rent rule that the government introduced, and nothing else.”

Susanne Withington was forced to close Via Boffe Cafe in Mornington due to ongoing lockdowns. Picture: Ian Currie.

VIA BOFFE

Mornington cafe

Popular Mornington cafe Via Boffe closed after high rent and ongoing lockdowns forced owner Susanne Withington to say goodbye after 10 years.

“It was a tough decision, we tried everything to stay open,” Ms Withington said. “But in the end there was no other option.”

The businesswoman said she was unable to negotiate a more realistic rent and couldn’t see a return to her per-Covid takings. She was also unable to sell the cafe because potential owners were “too scared” to take on a hospitality business.

“I know a lot of other food and beverage business are barely hanging on, they are hanging on by the skin of their teeth,” she said.

CITRUS AND VINE

Phillip Island restaurant

Citrus and Vine closed its doors in March because owner Sarah Pedersen was under financial pressure.

The lockdown over Valentine’s Day secured the restaurant’s fate.

“It was difficult to continually pay a lease with no dine ins,” she said.

“We couldn’t afford to get into more debt than what we already did with Covid.”

11 ELEVEN CAFE

Phillip Island cafe

11 Eleven Cafe owner Raj Ruthi’s business fell behind in rent just 17 months after it opened, forcing it to close in June.

“We were constantly playing catch up games,” he said.

“Basically all the lockdowns had a ripple effect on the cafe.”

Mr Ruthi said the business lost about 95 per cent of sales in the past year.

“Lockdown lifted and we spent money to restock the shop but then lockdown happened again and we lost all of that cash,” he said.

“It was a sad and uncomfortable time.”

Iconic Mildura restaurant Spanish Bar and Grill closed its doors in September. Picture: Facebook.

SPANISH BAR AND GRILL

Mildura restaurant

The iconic Mildura restaurant closed its doors for good in September.

Owner Ryan Casey, who has operated the restaurant for more than five years, in a statement on social media said it had been a “hell of a ride” but the business was no longer viable.

“We’ve been serving hundreds of people a week, grilling 500 kilos of scotch fillet, cooking 50 kilos of prawns and 60 kilos of chips,” he said.

“Despite the sounds of people enjoying their nights out, sharing their special moments with family and friends, we’ve decided to close the restaurant.

“There are a whole bunch of reasons why, but because of the lockdowns, restricted numbers, costs continuing to rise and staffing, the numbers were no longer adding up.”