Kaunas Municipality Accused of Ruining Business: Old Town Bars Preparing for Bankruptcy

He learned about the start of grandiose repairs 12 days ago.

“We really did not expect the blink of an eye from the municipality of Kaunas. We knew that Vilnius Street was being repaired and no one knew when the works would begin. It happened that on July 1, the representatives of the municipality informed us that already on July 12 the entire Vilnius street, from the Town Hall Square to the Laisvės Alley, will be closed for a year ”, said the businessman who contacted the Delfi Portal.

Together with his partners, the man who runs the Vilniaus street bar asked not to mention his first and last name. He feared that Kaunas officials could hamper his business in the future.

“The worst thing is that we have been notified 12 days in advance of the work that will begin, which will make us basically unable to carry out our activities and we will have to close. In addition, we heard hints from the representatives of the municipality that it is better not even to try to go to the media and seek justice, ”said the businessman.

The main problems: neither product suppliers nor food couriers will come

When asked if bars and other catering establishments were actually ordered to cease operations, the interlocutor said that there was no such requirement, but that conditions were created in which it was not possible to carry out profitable and efficient operations.

“During the repairs, an 80 cm wide passage will be left near the buildings, such a narrow space when the doors are kept open and“ close ”the entire sidewalk. The entire Vilnius street will be clear and impassable. So how do you deliver products to suppliers, after all, no one will carry them by hand? Of course, we lose the opportunity to build tables outside, and not all visitors want to be inside, especially in summer.

We also considered that if we somehow solved the problem of product delivery and we had no visitors, we could work through food delivery platforms. But here, too, the problem is that the food messengers still won’t be able to approach us, we would have to take the ordered food to King Mindaugas Avenue ”, said the businessman considering the bankruptcy of the company.

Even if you continue to trade, don’t expect to work profitably

“The quarantine lasted eight months, all the bars were closed. But at that time nobody did anything, and now that summer, the season itself, it is decided to start the repair work in two weeks.

Could it be that the municipality could have announced future changes earlier, not two weeks in advance, but at least two months in advance so companies could prepare? “Now all this is reminiscent of the destruction of quarantined businesses that have just survived and are already beginning to recover,” said another interlocutor.

The Kaunas resident said he was trying to negotiate with the owners of the rented premises, but did not yet know their position, and the agreement concluded was long-term. With a dozen employees, it seems likely that you will be fired, because even with the bar up and running, turnover will be minimal, according to the owner, and it certainly won’t make a profit.

“Only chain bars and restaurants can afford to work ‘less.’ And for us little ones, it’s quite a painful blow. Because imagine, who would want to walk into a bar while walking between a bulldozer and a bulldozer, drinking and eating in it when the construction machinery rings outside the window? People prefer to choose the restaurants in Laisvės Alley.

Maybe the only way out is to quickly reorient, change the name to, say, “Builder’s Inn”, make sandwiches and serve cheap beer for the workers who will work here? “Ironized the businessman.

Accounts are empty and laid off workers must be compensated

“You are not going to do anything, you will have to stop working,” said a representative of the network who has a catering establishment on Vilniaus Street.

She acknowledged having to fire the workers who were saved during the quarantine, they demanded severance pay.

“It just came to our notice then. Our business has not yet recovered, the invoices are empty and we also have to pay severance for two months. I tried to negotiate amicably so that the labor contracts would be terminated by mutual agreement, I offered work in others points, but we cannot force them. They reject offers, for some the location is not suitable, for others – something else, “said the woman.

Kaunas said that the position of the municipality, when it is not prohibited to continue with activities, but closed access to bars and restaurants, was a hoax.

“I have heard that some bars promise to work and protest, but we will not do what they can ‘name’ here.” Who will go here, go through construction without being clear about where to eat? If there were more flexibility on the part of the municipality, we would try to negotiate with the owner of the premises so that he would give us a discount and the municipality would compensate it, ”said a representative of the network of hospitality establishments.

Plans to file a class action lawsuit

All those interviewed said that they had no doubt that Vilnius Street had to be tidied up. They are not satisfied with the condition of the sidewalks or the constantly problematic pipes.

“When the maintenance of Laisvės Alley was carried out, the works were carried out in stages. Yes, even if people could pass through it, the shops and bars located there did not have to close. After all, they could have come up with something similar. in the old town, for example, to repair not the entire Vilnius street at once, but in parts, ”said the entrepreneurs.

However, far from everyone agrees. Others said that while builders worked in stages, Vilniaus Street would be turned into a construction site not for a year, as is now planned, but for at least three.

The businessmen who run bars, restaurants and pubs on Vilniaus Street said they would file a class action against the Kaunas municipality, calling for interim protection measures to be applied during the court dispute, not to start wandering Vilniaus Street.

There is also the possibility of demanding that the municipality of Kaunas cover the losses and compensate at least a part of the lost profits.

It will replace everything: sidewalks, pavement, chandeliers and benches

The major planned renovation of Kaunas Old Town’s main artery, Vilniaus Street in Kaunas, has been debated for several years. The process intensified last fall, but there were several interruptions.

After the drafting of the project, a tender was called, but the proceedings were halted after one of the participants’ results was appealed to the court and the court received precautionary measures.

Finally, on June 15 of this year, the contract for the remodeling of Vilniaus Street was signed between the municipality of Kaunas and the closed corporation Autokausta, which won the works contract.

Its value is 4 million. 777 thousand euros. The estimated duration of the job is 12 months.

It seems that these works may take time, because the excavation works on Vilnius Street, which runs through the old town, will be supervised by archaeologists. And that they will find something valuable; there is no doubt that the investigation can take several weeks or months.

During the street overhaul, the pavement will be replaced – your stones will be cut and sanded to form a smooth surface that is more comfortable to walk on. The pavement of the sidewalks will be changed, as well as chandeliers and benches.

During Vilniaus Street’s management, all pipes, electricity and communication cables under it will be replaced.

The municipality of Kaunas has not yet given an answer

The Kaunas municipality, which is criticized by restaurant and bar managers, also had the opportunity to express its position.

Municipality representatives were also asked whether it was not possible to inform the companies operating on Vilniaus Street about the changes earlier, so that they would have time to prepare and adequately prepare for the reconstruction that would begin. Furthermore, on June 15, the contract was signed with the winning company Autokausta.

The representatives of the municipality were also asked how they value the complaints of business disruption, if it is planned to apply any compensation system to companies in disturbances.

The municipality of Kaunas has not yet given an answer, when it will be done, we will complement the text.