âWe didn’t know this was going to happen. It was all my life savings for my dream. Now with this second foreclosure we are currently insolvent. “
Ms Parry said she was struggling to pay for electricity, rent and staff salaries during the current COVID-19 lockdown, which could last until September.
âWe can’t make any of these payments. We are in the red. We haven’t made the payments because we don’t have anything in the bank. It is very scary. You have to be optimistic, but it’s difficult, âshe said.
âThe best we can hope for is to reopen and pay off our debts. We’ll just have to go back and work twice to make up for the losses. “
Ms. Parry called for the JobSaver program – grants of between $ 1,500 and $ 10,000 per week for companies with revenues down 30% – to help keep the employee handful on the books. It has yet to be approved.
She and her business partner have also applied for the one-time COVID-19 grant of up to $ 15,000 from the NSW government for businesses with a 30% drop in revenue. They haven’t heard yet if they can get that financial aid either.
Ms. Parry has also set up an online store to try to keep the business going while the storefront is closed.
She is not alone, as businesses in Sydney face the extended lockdown, which the Ai Group says costs $ 1 billion per week.
Labor, unions and NSW Treasurer Dominic Perrottet pushed Federal Treasurer Josh Frydenberg to reinstate the JobKeeper program which ended in March, but the Morrison government has so far resisted.
Ai Group chief executive Innes Willox warned state governments introducing tighter lockdowns, saying there was a need for “more proportionate responses” to COVID-19 outbreaks.
He said retail services, such as personal services like beauty salons, were often the hardest hit by lockdowns.
âWhile all of these expenses aren’t totally wasted forever, it’s not reassuring if your income or cash flow drops to zero for an extended period,â he said.
Any financial assistance to businesses had to be rolled out quickly, said Willox.