Material Things closes its doors as pandemic downturn takes hold

Prominent boutique Material Things has become the latest business casualty of the COVID-19 pandemic’s economic downturn.

After more than thirty years, store owner Michael Allamby announced the firm’s permanent closure on Facebook.

He told Barbados TODAY the decision to close the store was because of low customer spending and no visible pickup in sales in the short term.

Allamby said: “Because of the COVID, we have had two lockdowns and we have been unable to sustain the business based now on the level of turnover that we get and we had to project forward where this is going to take us, we need more capital and a big injection to sustain the business so a decision was made based on financial reasons to close the business at this time.”

The boutique owner explained the decision to close was based on predictions of how the market would look in the coming months.

“There is a big drop of money in circulation in the country and I think the Government has done a pretty good job in trying to sustain them and calling for ease from landlords and other persons invaded with the sustenance of business in Barbados but there is a limit to where you can go,” he said.

Reflecting on over 25 years at Material Things’ City Centre location, Allamby was philosophical on the closure of a store that had a “good run”.

He said: “It doesn’t mean that you won’t venture into a different or an area with less overheads in the future but it had to be done, you know people die, businesses die, they have cycles as well and the thing is to recognise very early where you are so that you don’t dig a deep financial hole for yourselves and you stop the financial haemorrhage and you look forward instead of looking backwards.”

The entrepreneur said despite the closing of the flagship location, the employees will be absorbed by his other businesses.

Allamby told Barbados TODAY: “We shouldn’t see that it should affect the employees Material Things. Obviously, there will be some effect on the part-time workers but I will try my best to ensure that the workers who depend on us I can sustain them in other businesses.”

But even as the store has been forced to close its doors due to the high overheads and low sales, Allamby welcomed competition in online sales as an emerging form of retailing. But he warned against too much government regulation.

Allamby said: “It has a tremendous impact but I believe that my business should be innovative enough that I can go to the point where I compete with them. I happen to be a person who doesn’t like too much regulation or Government intrusion in business so I fully support a lot of online businesses. I truly think that is the way to go in Barbados.

“At this stage, I think the Government should encourage them and try to find a way to make it easier for them to earn foreign exchange by deregulating some of the areas that makes it difficult for them to bring foreign exchange to the country.”
(KB)