“In Yucatan, around four thousand small businesses have filed for bankruptcy, closing temporarily or permanently due to the COVID-19 pandemic”, revealed Jorge Cardeña Licona, president of the National Chamber of Commerce in Small, Services, and Tourism (Canacope-Servytur) in Merida.
The main reasons are low sales (up to 60 percent losses), lack of solvency, high costs of electricity services and rents, and the situation got more complicated by new measures that the Yucatan government established to prevent infections and deaths, which restrict mobility, reduce business hours and prohibit the sale of alcoholic beverages.
In recent days, the head of the National Chamber of Commerce, Services and Tourism of Mérida, Michel Salum Francis, said: “I think that informal trade has increased because many people have lost their jobs, people are any type of income, and this situation could lead to an increase in crime too”.
For its part, the National Chamber of the Restaurant and Seasoned Food Industry (Canirac), in Yucatan, indicated this weekend that “several restaurateurs have run out of oxygen” and the situation could worsen if the state returns to the Red traffic light.
Cardeña Licona indicated that the small businesses most affected are the grocery stores, as well as hairdressers, bookstores, beer agencies, and others considered as non-essential. In the absence of profits, there is no way to pay wages, electricity, rent.
“It is better to close than to open a business that does not meet the needs,” he said. More than one thousand corner stores that have operated normally for years or decades have been forced to close due to the pandemic”, he added.
“Given this scenario, many businesses and people who have become unemployed have chosen to join the informal trade to survive, and more people will resort to that option, as they can no longer pay salaries, rent, electricity, and so on”, the executive concluded.
The Yucatan Times
more recommended stories
Cold front No. 4 is heading to the Yucatan Peninsula
Cold front No. 4, which today.
AMLO hopes to raise 50 billion pesos with the extinction of trusts
President Andrés Manuel López Obrador assured.
140 cases of dengue registered in Yucatan so far in 2020
“There are 140 cases of dengue.
Hugs and not bullets not working for AMLO – narco shooting leaves 11 dead in Guanajuato.
Preliminary versions from the authorities, say.
FONATUR ensures the preservation of Merida’s Cuxtal Ecological Reserve
With an investment of 278 million.
Dos Bocas, a “masterpiece” of the Secretariat of Energy destined to failure
Experts worldwide have stated that the.
Will corrupt Mexican ex-presidents ever face justice?
In a climate of mounting tension,.
Man accused of robbery with violence in Mérida, finally arrested in Campeche
For the crime of qualified robbery.
Yucatecan politician Cecilia Patrón Laviada reveals her aspirations to become mayor of Mérida
The federal representative and president of.
Donald Trump’s taxes out in the open – A record of a lousy businessman.
The New York Times obtained Donald.