As the first releases approach, some companies feel forgotten: not all will open their doors

While the government has promised small releases to merchants, beauty professionals, entrepreneurs who provide entertainment and health services all share extremely pessimistic moods.

Aurimas Mačiukas, president of the Lithuanian Health Club Association (LSKA), says 90 percent. Sports clubs are already examining the possibility of bankruptcy if the suspension continues any longer.

Raimundas Bilinskas, the marketing director of the Multikino cinema, assures that he has the money until March. And if you have to pay the rent, there may be fewer cinemas in Lithuania.

Matas Puodžiūnas, the co-owner of the capital’s bars such as Bardakas, Sanatorija and the Materialist disc nightclub, sees that after the quarantine, 80 percent. Bars may no longer open, they are last in line and are still demonized by the public. Even the municipalities require full payment of the rent.

Representatives of closed companies speak of the lack of attention from the government.

Cat: 90 percent. consider bankruptcy if you continue to do so

A. Mačiukas, president of the association representing sports clubs, shares his sadness.

“We have been trying to call the government for a long time, but we didn’t listen much. We are already preparing more stringent letters and requirements, because we firmly believe that we will be able to safely open on March 1 with all security requirements, while maintaining international requirements for sports club activities. But so far our government does not listen and does not even enter into dialogue, which is the worst, ”says A. Mačiukas.

He assures that in some countries the health sector is equated with essential services, with partial openings with restrictions.

“Of course, in some countries health clubs are closed, at least in most countries it is clear how and to which indicators they will be opened. And in Lithuania, our sector is in complete uncertainty to this day. There is not even follow-up, just speculation that athletes breathe heavily, something else. But even in the last six months, when work was still in progress between quarantines, there was no known case. There is no follow-up, there is just a lot of speculation, ”said A. Mačiukas.

Asked about the financial situation of sports clubs, he assured him that the rent was like a stone around his neck.

“We did an internal survey in the association, it’s about 90 percent. Consider filing for bankruptcy if this all goes on for several more months. Actually, there was no 2020 season. Among the quarantines there was a drop in income, because in the summer people are still afraid, and even the main costs of sports clubs have not been covered, and during the quarantine it is a 100 percent drop in income, ”feared A. Mačiukas.

He explains that when sports clubs covered costs out of their own funds, they no longer had to wait until bankruptcy.

“The mood is sad. The second quarantine only reimburses wages during downtime, but does not reflect underlying costs. The biggest cost is rent for which nothing is provided during the second quarantine. There are also contracts for leasing for purchased equipment, utilities and facilities that need to be heated to a minimum. Costs are high, areas are high, and you can see for yourself that the amounts are impressive. What a sad mood, “says A Mačiukas.

He promises to continue writing several “recalls” to the Government each week, ensuring that sports clubs are committed to safety requirements and commitments.

Multikino has the money until March, and if you have to pay rent, it does not have it

R. Bilinskas, Marketing Manager at Multikino, ensures that if cinemas do not receive any additional help to what currently exists, there may be fewer theaters in the future.

“Hopes that we will start working in March are really low. Now we wait maybe April. Financially, for commercial cinema centers like us, Multikino or Forum Cinemas, this is really very difficult. In the good times, we got a lot of income from the sale of tickets to the cinema, and now the most financially painful thing is the rent. It has been hung in several ways: if there will be a payment, if there will be discounts or subsidies, as Invega previously provided. It used to make life easier ” says R. Bilinskas.

The aid currently proposed by the government is subsidies to small businesses linked to the payment of income tax for individuals.

“If there are no bigger subsidies and we limit ourselves to what GPM offers to pay for, then maybe there will be no cinema. The network may not last. Forum Cinem could probably be even more painful because they had even less support, given their size and In fact, we have the money until March 1 and it is unknown how the next one will be. And if we have to pay the rent in full, then we have no money, “says R. Bilinskas.

However, he remains optimistic that the government “will work, see the big picture and make some decisions.”

“It just came to our notice then. We are now working with various working groups, and we have sent letters to the Ministry of Culture, the Ministry of Health, the Ministry of Economy and Innovation, the Ministry of Finance, and the Government. We make suggestions on how We can act and await your response. We are not planning any promotion, it would be better for us to fish and we will catch that fish. We need a little support, “says R. Bilinskas.

He acknowledged that the debate was very slow and that concrete support for possible support was not yet clear.

The owner of the bar says there will be many bars

M. Puodžiūnas, co-owner of the capital’s bars such as Bardakas, Sanatorija and the Materialistė nightclub, does not see the light at the end of the tunnel.

“Sad mood compared to the first quarantine, both due to lower compensation and extended quarantine time. As we can see now, conditions are only tightening. What worries us most is the proposal that we will be able to open outdoor terraces if the number of diseases is 25 or less, per 100 thousand population in 14 days. In our opinion, this is a cosmically small reading, “says M. Puodžiūnas.

He doubts that Lithuania can achieve such morbidity in late summer.

“In Spain, in Gran Canaria or Tenerife itself, there are 200-300 boxes a day, but there the bars are open until 10 hours, there are outdoor terraces, everyone is great, they live, they move. I’m afraid we are not moving at all from the point of death. As we know, the bars will stick at the end. I’m not talking about clubs at all, they will probably be the last to open. The second quarantine is reminiscent of a tragedy ”, fears the owner.

The employer is comforted that he no longer has anything to say to the employees: during the first quarantine, the government support for the rent was saved and now it is gone.

“The non-enforcement of rent compensation is completely disastrous for us. After closing the bar, you have to pay 20 thousand of rent. euros, if we specifically take Vilnius “Bardakas”. The municipality does not undertake to apply a discount on the rent. For most bars this will be a failure to open. Because if you need to pay rent without working, imagine what debts you will have to open after quarantine, ”says M. Puodžiūnas.

He says that even private landlords tend to cut their rent by a fifth.

“We are at a dead end when it comes to renting a local in the municipality. They offer to defer or take soft loans and pay the rent. These three-bar venues in Vilnius cost 42 thousand from the municipality. per month, it already exceeds 200 thousand. outstanding debt of the euro. We wrote, we asked what to do: delaying and opening a debt of this type would be a complete bankruptcy. It would be impossible to open. There is no business where you can pay 40 thousand. euros “, – did not hide M. Puodžiūnas.

He assures that the bar owners are talking informally about the situation, but there are no easy solutions. Bars are a “demonized sector because people come here, drink and embrace.”

“It just came to our notice then. This is how we understand that it is necessary to manage a pandemic. But so far there is no suggestion on how to return from such a long quarantine, with huge rent debts and lack of money to compensate it. We look at the example of Poland, where 150 bars rebelled and opened, and continues to operate successfully despite restrictions. We are quietly talking about the fact that this is perhaps the only solution of its kind here, because if we expect that many diseases , 80 percent. not all bars will open “, – doubts M. Puodžiūnas.

I would suggest opening outdoor decks in hot weather and reducing restrictions.

The quarantine in Lithuania is valid as of November 7, since then it is no longer possible to use most entertainment services.

The provision of beauty, leisure, sports facilities, sports clubs, fitness centers, entertainment, recreation, swimming pools, saunas (excluding public baths for personal hygiene), discos, dance halls, cinemas and movie clubs is currently prohibited .

Delphi Remember that during the second quarantine it was decided to end the compensation of the companies’ rent. The Minister of Economy and Innovation Aušrinė Armonaitė explained that the letter received from the STT also contributed to that decision. As previously announced Delphi, STT analysis showed that 7 million. 1 million euros, that is, approximately one third of the partial rent compensation measure, was spent on premises of large supermarkets. In addition, cases have been identified in which the tenant has been related to the owner by kinship, ownership and management of the business.