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Sign of economy, Beaudry Benson forced to close
Thelma Grimes/San Pedro Valley News-Sun
As the economy continues to suffer, Beaudry Chevrolet Chrysler Dodge and Jeep on State Route 80 in Benson closed their doors last week.
With reports that the company had just filed Chapter 11 bankruptcy and would keep stores open throughout the state, the Benson center was giving about eight employees the news that they no longer had a job last Wednesday.
Beau Renfro, manager of the Benson store, said the Beaudry RV Company had just accumulated too much debt and couldn't keep the local store open. The decision did appear abrupt, however, as they opened early Wednesday morning, and by the end of the day the decision to go out of business was final.
One resident had his truck in the service center, and was called to come and pick it up because they were no longer in business and couldn't perform the required services. Residents with warranties needing service will now have to go to either Sierra Vista or Tucson.
Renfro said they will keep the RV part of the business open, but will no longer sell cars or provide maintenance to customers.
"Corporate filed for chapter 11 for the company statewide, and the Benson store is closing. That's all I can say," Renfro said. "Business is really bad, and there is probably going to be more. We are letting go eight employees, but that number doesn't seem that high, because we had already let more employees go a while ago when the problems first started."
For Renfro, the store's closing is more than just losing jobs. After being in the community for the last 18 months, the Tucson resident said he has come to love Benson.
"I really hate to see this place close," he said. "Benson has some really good people."
The store in Benson has been there for the last 10 years. Renfro said the company tried to sell the business over the last year but had no takers.
In a statement, Thomas Sylvester, Beaudry's chief executive officer, said the company's assets and liabilities were in the range of $50 million and $100 million.
In a court motion, Beaudry sought permission to seek interim and long-term financing.
In Benson, Mayor Mark Fenn said this is a major loss and the city is concerned if there is more to come.
"This is disappointing, but not totally surprising," he said. "I know it will be a problem when it comes to city sales taxes, and as for the employees being laid off, that's not going to help either. It's really tough out there right now. It is for my own business, and I have talked to several in town that are struggling. I just hope and pray that existing businesses here in Benson can weather it out. I'm just nervous for everybody."
City officials saw the signs of decreasing revenue October when Mayor Fenn put out a notice to citizens promising that they would take action to take care of the city's finances in a tough economy.
Besides signs of the national economy struggling, it appears Arizona is on an even worse track, with a $1.6-billion shortfall this year and more expecting in the coming fiscal year.
Jim Cox, the city's finance director, said so far the state's money problems have had a minimal impact on the local budget, but state-shared revenue programs and state-funded grant programs may be a target in the coming year.
In October, Cox said an order was issued that expenditures in excess of $500 must be approved in advance. This order came in the wake of state talks of more budget shortfalls, and as some of the nation's leading retailers continue to report losses and closures.
In Benson, the city relies heavily on sales tax revenues. In the 2008 fiscal year, the city collected about $3.7 million in revenues, a 5 percent increase from the year before.
However, collections through July and September of this year have already had a 5 percent decrease.
"The more important unknowns are by how much revenues will decrease, and for how long?" Cox said. "It is impossible to make an accurate prediction of the depth and the duration at this time. Hence we are proactively making expenditures for only the goods and services required to effectively serve the daily needs of the citizens of our community. The city's belt-tightening will last as long as necessary."
Kim Lockhart, president of the Benson/San Pedro Valley Chamber of Commerce, said in these tough times it's going to be important for businesses to be resilient.
"Difficult financial times are always a concern for businesses," she said. "However, America has always survived even the deepest of financial trials. On a local level, we need to concern ourselves with our businesses surviving, with the hope of thriving. We need to band together in order to find opportunities to help each other grow and prosper. The Chamber of Commerce stands ready to offer guidance and cohesiveness to our local business community."
On Jan. 8, Lockhart said the chamber has invited a speaker to address how a business can adapt and succeed in tough economic times.
As the economy continues to suffer, Beaudry Chevrolet Chrysler Dodge and Jeep on State Route 80 in Benson closed their doors last week.
With reports that the company had just filed Chapter 11 bankruptcy and would keep stores open throughout the state, the Benson center was giving about eight employees the news that they no longer had a job last Wednesday.
Beau Renfro, manager of the Benson store, said the Beaudry RV Company had just accumulated too much debt and couldn't keep the local store open. The decision did appear abrupt, however, as they opened early Wednesday morning, and by the end of the day the decision to go out of business was final.
One resident had his truck in the service center, and was called to come and pick it up because they were no longer in business and couldn't perform the required services. Residents with warranties needing service will now have to go to either Sierra Vista or Tucson.
Renfro said they will keep the RV part of the business open, but will no longer sell cars or provide maintenance to customers.
"Corporate filed for chapter 11 for the company statewide, and the Benson store is closing. That's all I can say," Renfro said. "Business is really bad, and there is probably going to be more. We are letting go eight employees, but that number doesn't seem that high, because we had already let more employees go a while ago when the problems first started."
For Renfro, the store's closing is more than just losing jobs. After being in the community for the last 18 months, the Tucson resident said he has come to love Benson.
"I really hate to see this place close," he said. "Benson has some really good people."
The store in Benson has been there for the last 10 years. Renfro said the company tried to sell the business over the last year but had no takers.
In a statement, Thomas Sylvester, Beaudry's chief executive officer, said the company's assets and liabilities were in the range of $50 million and $100 million.
In a court motion, Beaudry sought permission to seek interim and long-term financing.
In Benson, Mayor Mark Fenn said this is a major loss and the city is concerned if there is more to come.
"This is disappointing, but not totally surprising," he said. "I know it will be a problem when it comes to city sales taxes, and as for the employees being laid off, that's not going to help either. It's really tough out there right now. It is for my own business, and I have talked to several in town that are struggling. I just hope and pray that existing businesses here in Benson can weather it out. I'm just nervous for everybody."
City officials saw the signs of decreasing revenue October when Mayor Fenn put out a notice to citizens promising that they would take action to take care of the city's finances in a tough economy.
Besides signs of the national economy struggling, it appears Arizona is on an even worse track, with a $1.6-billion shortfall this year and more expecting in the coming fiscal year.
Jim Cox, the city's finance director, said so far the state's money problems have had a minimal impact on the local budget, but state-shared revenue programs and state-funded grant programs may be a target in the coming year.
In October, Cox said an order was issued that expenditures in excess of $500 must be approved in advance. This order came in the wake of state talks of more budget shortfalls, and as some of the nation's leading retailers continue to report losses and closures.
In Benson, the city relies heavily on sales tax revenues. In the 2008 fiscal year, the city collected about $3.7 million in revenues, a 5 percent increase from the year before.
However, collections through July and September of this year have already had a 5 percent decrease.
"The more important unknowns are by how much revenues will decrease, and for how long?" Cox said. "It is impossible to make an accurate prediction of the depth and the duration at this time. Hence we are proactively making expenditures for only the goods and services required to effectively serve the daily needs of the citizens of our community. The city's belt-tightening will last as long as necessary."
Kim Lockhart, president of the Benson/San Pedro Valley Chamber of Commerce, said in these tough times it's going to be important for businesses to be resilient.
"Difficult financial times are always a concern for businesses," she said. "However, America has always survived even the deepest of financial trials. On a local level, we need to concern ourselves with our businesses surviving, with the hope of thriving. We need to band together in order to find opportunities to help each other grow and prosper. The Chamber of Commerce stands ready to offer guidance and cohesiveness to our local business community."
On Jan. 8, Lockhart said the chamber has invited a speaker to address how a business can adapt and succeed in tough economic times.
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