5 businesses shut down operations

Five businesses owned by one person recently shut down operations on Saipan after the owner filed early this week a bankruptcy petition in federal court.

These businesses, owned by businesswoman Maria Theresa T. Tagorda, are Tambayan Restaurant and Lounge, RNT General Construction and Contractor, Ma. Teresa T. Tagorda Accounting Services, and Tagorda Entertainment and Promotion Services.

Her other business, Cariñosa Restaurant on Middle Road, was sold to another.

In her Chapter 7 petition, the businesswoman claimed to have $23,412.50 in personal property as her assets. However, she claimed to have $94,420 in liabilities owed to creditors. Among her creditors are the Commonwealth Health Center, Commonwealth Utilities Corp., and Revenue and Tax.

Tagorda said she owes $10,000 in employee medical expenses to CHC; $4,000 in utility expenses for August to September 2006 to CUC; and $5,000 in taxes from 2005 to the present to Revenue and Tax.

Under Bankruptcy Chapter 7, most assets of the debtor are liquidated as quickly as possible to pay off creditors to the extent possible and to free the debtor to start anew.

The Bankruptcy Act is a federal law for the benefit and relief of creditors and debtors in cases in which the latter are unable or unwilling to pay their financial obligations.

In a recent interview, Tagorda cited the difficult economic situation as a major factor in the closures.

“It’s hard to survive. Just take the utilities as an example. It went up dramatically,” she said.

She said that, for Tambayan, she used to pay $1,000 or $1,200 a month. When CUC increased the electricity rates, the billing went up to $2,000.

Revenues meantime had dropped by 85 percent, she said.

Tagorda launched Tambayan four years ago. It featured Filipino bands.

Aside from the financial difficulty, Tagorda cited the difficult labor processing in the CNMI.

“I hope the government would also think of the employers. I feel that they’re just concerned about the workers,” she said.

She said permit processing had been slow, causing many problems for her employees’ transfer or renewal.

“I try my best to help my employees but with all these difficulties, I give up. I can’t go on with the business,” said Tagorda.

She used to employ 28 staff. As of last month, the number was down to 12. She said the employees were notified about the closure.

As for Cariñosa, Tagorda said that she had to let it go after less than a year of operation. The restaurant is now under a new management and is named Casa de Ilongga.

Tagorda said Tambayan would also be up for sale if there is anybody interested.

In the meantime, the businesswoman said she would rest in Guam where she initially ventured into the bar and entertainment business.

She founded Mariposa Lounge in Guam several years ago and closed it in 2002 to move to Saipan to start Tambayan. [I][B](With Liberty Dones)[/B][/I]