2008: ‘Annus horribilis’ for CNMI’s businesses

Everywhere one turned this year “for rent” signs hung in the windows of empty buildings.

Businesses closed citing poor economic conditions, fewer tourists and high power rates.

The two most notable closures were Carmen Safeway and Blockbuster, with both businesses announcing they were seizing operations within the same week in October. Both closings were seen as a blow to the community and a sign of the hard times for the CNMI.

At the time of the announcement, Carmen Safeway general manager Eli Maravilla said the closure came as the store saw fewer customers and utility rates increased, cutting into profits. The store had employed 21 people before it closed, according to Maravilla, most of them hired from the local community.

Several government officials, in their declarations supporting Gov. Benigno Fitial’s federalization lawsuit, cited the closure of Carmen Safeway as an example of the Commonwealth’s current economic depression.

“The economic depression of the last three years has resulted in the departure from the Commonwealth of dozens of small (and not so small) businesses, which simply were unable to cover their costs and operate profitably in the community. Just this past week, the Borja family announced the closing of its Carmen Safeway Supermarket, one of the oldest supermarkets on the island,” Finance Secretary Eloy Inos wrote in his declaration.

A days before the closure of Carmen Safeway was announced, Saipan’s only branch of Blockbuster shut its doors for good.

Many local businesses also took a blow last week with dismal holiday sales.

J.C. Tenorio Enterprises, Inc., which owns a chain of retail and grocery stores on Saipan, said sales are down by as much as 20 percent this holiday season.

“This has been a very difficult Christmas for us,” said corporate special project manager Bo Palacios.

Liberty Department Store’s sales also were lagging behind last year’s numbers, which forced the Garapan retailer to sell some of their items at cost.

Assistant sales manager Elvira Fruza said the uncertainty of June 2009’s federal takeover of the islands’ immigration, coupled with the current worldwide economic turmoil, has resulted in the tightening of people’s purse strings.

But it hasn’t been all bad news in the CNMI.

Hollywood Theaters, which shut its doors April, reopened about a month later. The seven-theater complex is the only movie theater on Saipan. Although the theater reopened it’s been a struggle In September officials decided to close the theater twice weekly to cope with a downturn in business and high electricity costs. The theater resumed daily operations for the holiday season.

Also, La Isla Moda, a shop selling local souvenirs, recently opened in the heart of Garapan to target visitors.