Lynnwood’s ‘unessential’ businesses try to stay afloat amid closures

by Cody Sexton, Lynnwood Today | May 6, 2020 8:48 am

The empty parking lot of Anna’s Home Furnishings, closed due to Gov. Jay Inslee’s stay-at-home order.

As businesses deemed non-essential under Gov. Jay Inslee’s stay-at-home order closed their doors to the public, Lynnwood business owners are left to figure out how to stay afloat amid concerns of the coronavirus pandemic.

Phong Nguyen, owner of Anna’s Home Furnishings, said the governor should have directed businesses to be closed sooner than the March 23 date when he issued his Stay Home, Stay Healthy order.

With panic spreading as fast as the virus itself, Nguyen said many of his employees were hesitant to come into work. However, without a directive from the state, Nguyen said closing early meant losing out on any financial assistance to subsidize his loss.

“You were basically screwed if you stayed open and screwed if you closed our doors,“ he said.

Nguyen is one of several Lynnwood business owners unable to his keep his store open during the governor’s order. Though Anna’s Home Furnishings offers online ordering, he said it does not compare to  in-store shopping.

“Because of the nature of furniture sales, it’s really difficult to sell big-ticket items over the internet,” he said.

For example, if a customer orders a piece of furniture online, the color or texture could be off and they are likely to return it. According to Nguyen, the high cost of shipping large pieces of furniture also makes online shopping less favorable than selling in-store.

Nguyen recently sent a letter to Mayor Nicola Smith[1] — which was read during the Lynnwood City Council’s April 27 business meeting — urging city officials to allow businesses to be able to reopen. In his letter, Nguyen said his store should be labeled essential for those needing home office furniture while those who are working or schooling from home. Other families might need new beds for family members staying with them because they cannot take care of themselves during the stay-home order.

Following the meeting, a letter drafted by Councilmember Jim Smith[2] and signed by six members of the council was sent to the governor, asking that businesses be able to re-open using “common sense” safety standards.

While his store is closed, Nguyen said he and his wife are trying to make the best of their time and are spending much-needed family time together. The closures have allowed the couple to have their first weekend off together in 15 years.

“It’s almost like a taste of early retirement without the benefits,” he said.

Anytime Fitness owner Flex Velasco said since closing his Lynnwood gym, he has had to put a hold on his clients’ memberships and is unable to earn an income from the business he runs with his wife.

“It’s been tough,” he said. “With the freezes, that means we have zero income (from the gym).”

Velasco decided to take his business online and began offering home workouts via Zoom and Facebook. However, the number of members participating online pale in comparison to those who would come into the gym.

“It’s just not the same when you go from 400 members to a dozen,” he said. “It’s a big change.”

Fortunately, Velasco and his wife are still able to earn an income through information technology (IT) jobs with Boeing. But fitness is their passion and they miss being able to share that with others.

“I think what we’re missing the most is that interaction with our members who like to come in and chat,” he said.

To offset his revenue loss, Velasco said he contacted the company he leases his gym equipment from and the bank that holds his business loan to request a temporary suspension in payments for his accounts. He said he also contacted his landlord, but he has not been able to receive an extension and will still have to pay rent for his facility.

“They’re not even willing to budge at all,” he said.

While some landlords are unable to or choose not to offer extensions, Phenix Salon Suites owner Dalene Patterson said she is working with her tenants who are renting spaces from her and are currently unable to earn an income.

“I told my girls we’re all in this together and we’ll find a way to get through this and I’m not making you pay it back,” she said. “I’m going to take care of my people.”

Lynnwood’s Phenix Salon is a franchise that offers cosmetologists — including hair stylists and nail technicians — a space to run their own business. Patterson has 25 tenants at her location, none of whom are able to take clients in the salon. She added that her concern right now is that her tenants are able to support their own families.

“They’re making no money right now,” she said. “We can’t charge them rent, that’s the wrong thing to do.”

Charlene Arntson, owner of Anchored Grace Hair Company in Phenix Salon, said that while she understands why the closures are in effect, she still has to pay her expenses and support her family.

“I don’t want to be working in a situation where we could be spreading this horrible (virus) to somebody else that could actually die from it,” she said. “However, I still need to somehow pay my mortgage, feed my children and pay my bills.”

To supplement her income while the salon is closed, Arntson said she is still making a commission on products she sells online, delivering them to clients and leaving them on their doorstep. She has also sold gift cards to her clients, but adds that those are just delaying the problem. When she starts to work again, she will be essentially working for free.

“Gift cards are kind of a double-edged sword,” she said.

Washington state officials have put $10 million into helping small businesses during the coronavirus outbreak. The Working Washington Small Business grants offer businesses with up to 10 employees $10,000 in grant money, which can be used to pay rent, utilities, inventory and other business-related expenses. Since the grants became available April 7, more than 26,000 business owners have applied. 

City of Lynnwood Economic Development Director David Kleitsch said the city is working as a liaison between businesses and available assistance. Lately, Kleitsch said city staff has been putting businesses in contact with the Small Business Development Center, which can assist businesses in applying for federal Small Business Administration (SBA) loans.

The city has also created a new webpage[3] dedicated to local business owners, directing them toward available help.

“We’re doing all we can to connect them to where the resources are,” he said. “We’re trying to get people connected to where the large amounts of money and the programs are.”

Additionally, the Economic Alliance Snohomish County has compiled a variety of resources[4] to help business during the stay-at-home order.

However, high demand for relief has created delays and many business owners have yet to receive any grant money

Alicia Hayes, owner of Lynnwood’s Swept Salon, said she doesn’t know any business owners who have applied and received grant funding.

“Although they say there is help available, I don’t know of any small businesses that have received help,” she said. “As a whole I think a lot of us are struggling.”

Though her salon is closed, Hayes said she is in constant communication with her clients and does what she can to help them.

“I think part of being a good business owner is being reliable for your clients and being available for them,” she said.

Recently, Hayes assisted one of her clients in cutting her husband’s hair via video messaging. However, she said it was a one-time service she will not be offering regularly. While many might be tempted to take matters into their own hands where their hair is concerned, Hayes said she does not advise clients to attempt to cut or color their hair at home. She said the process could be dangerous and the results could be disastrous and expensive to repair.

“I don’t encourage home hair color, she said. “A moment of desperation might actually equal a much larger bill and correction after all of this. The risk isn’t worth the reward.”

Last week, Gov. Inslee announced he would be extending the stay-at-home order through the end of May. Additionally, he announced a four-phase process[5] that he and public health officials plan to take for resuming recreational, social and business activities. Under the first phase, businesses will be expected to implement any additional requirements developed specifically for their industry, like those established for construction.

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