Against the backdrop of rising petroleum prices at home and abroad, the specter of failing businesses will loom to a greater degree. Of interest to BU will be the number of Black businesses which are likely to flounder in the current environment. Obviously to manage any commercial enterprise in a climate which reeks of unpredictability and stiff competition, calls for high order business skills, in-dispersed with a heavy dose of common sense. We reluctantly have to admit that too many Black businesses in Barbados have attracted comments like “no succession planning”, “a willingness to be too generous with their deposits to the hairy bank” and other disparaging labels too numerous to mention.
A related story which resonated with the BU household appeared in the Nation newspaper last week. It outlined the imminent demise of a popular Black business, the Dining Club which is owned by Chef Peter Edey.
The article outlined the huge debt which Chef Edey’s catering business has accumulated. If we recall what was reported correctly, the debt racked-up is to the tune of $200,000.00. Edey is quoted as lamenting the uncertainty which now surrounds the tenure of his 100+ employees. What floored the BU household is his plea to the government for help!
One of our earlier blogs highlighted the fall of the previously Black successful Rayside Construction company. There is no evidence that the Dining Club has suffered the same fate. However we remain concerned that another significant Black owned business is struggling to avoid bankruptcy. We accept that some businesses will encounter turbulence from time to time given the day-to-day challenges of doing business. We have become ambivalent to the plight of too many prominent Black businesses which have ‘pissed’ away their good standing. Can any member of the BU family comment on how Chef Peter Edey who is widely regarded as Chef #1 in Barbados would have shipwrecked his business caused by the accumulation of exorbitant debt?
Even if we were to believe that the catering business in Barbados is not as lucrative as we thought, we are still encouraged to examine the following line of reasoning:
If Edey’s business was failing why would he have ignored early indicators which called for important management decisions to have been taken to save his company? If early corrective measures taken had failed then free market forces should have come into play i.e. liquidation, inject new capital, sell off as a going concern etcetera. We continue to be embarrass to read of Chef Peter Edey ‘begging’ the government of Barbados to rescue his business. We don’t know the guy but after viewing his popular TV cooking show he seems to be an affable kind of person. Please forgive us Chef Edey if we are not coming over as being very sympathetic to your plight.
Mr. Edey you invested in the Dining Club catering business, you managed it we hope, to the best of your ability, and you appear to have failed. In a free market arrangement there is a consequence you sometimes have to suffer from making bad business decisions. We live in a competitive arena which increasingly invites competition from at home and abroad. If the Dining Club is unable to manage successfully in our domestic market, how can it expect to be successful going forward in a changing market where new entrants are expected to enter and provide sterner competition? Maybe this is one of the reasons why Prime Minister David Thompson was encouraged to remove some of the protection on petroleum which the Barbados market has benefited in recent years. Maybe he is sending a message that not only individuals need to make difference choices, so too our businesses if they want to be able to compete going forward.
Modern business practices and tools make it easy to diagnose and analyze company performance minute by minute. If the principals of any business doubt their management ability, support services are available to assist. The BU household has become increasingly impatient, maybe intolerant to the utterances of Black businesses ‘begging’ for assistance from the public purse. Why is it that we never hear Indians, Syrians or White business doing the same thing?
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I am mystified as to how a catering company in B’dos could have 100 plus employees. Even if Mr. Edey provided servers and bartenders at high end functions ,on top of the food prep people, chef/cooks, delivery drivers, office staff (accountant and bookings secretary) how on earth could he have 100 plus employees?? This is just one glaringly obvious reason why his business is in trouble.
For him to have even entertained putting a food business, even if it is “hign end” in a place paying $30,000.00 a month for rent says something about his business sense.
The 100 employees had me puzzled when I read it weeks ago as well.
Some of our business men have to learn to start small and grow steadly, not try to reach the mountain in one day.
I run a business that, can be very profitable, but I am moving it at a small pace and also not trying to live the “big life” too soon.
The facts and figures given in the Nation article don’t check out, additionally I was told recently that the failure at Manor Lodge was another in a string of failed ventures.
$30,000.00 a month for a spot in an Industrial Park???
I wonder how much Mr. Edy was paying himself???
It is unfortunate.
Mr. Edey needs to take stock of the way he is living, his business management deecisions and what his goals really are…. After the mess of bankruptcy etc, he can start out with a shop at the back of his house and move on from there. There is no harm is starting small again.
I have seen many restaurants go bust on this rock. It is a regular occurance.
Restaurants are all about location, attraction and quality. You have to have all three to make a successful business.
Sounds as though he went too big too fast. Just like Neville Rowe with Julienne.
There must have been something wrong with his business model.. I can’t see expenses like that being easily covered by a ‘high end’ restaurant price list.
What he needed was a business planning advisor. One would never have allowed him to rent someplace where he was paying $30,000 a month in rent. What kind of cash flow was he expecting, w hat was his start up capital? Did he budget for salaries, supplies, fuel, etc. Was that rent gross or net, net, net as is done with commerical properties? Lots of questions need to be answered. Did he do any market research to determine the need for his type of business in that location and on the island even? Did he talk to others in the same industry/line of business? I dont feel sorry for him, you cant give Bajans advice, they know every thing.
We find it incomprehensible that a man as popular as Chef Edey who has marketed himself to the point where he is a household brand in Barbados is not able to convert this to a successful business.
Chef Edey please tell us the facso that we can learn from your mistakes!
For black biznesses to be successful in Barbados they must get permission from the White people and the satus quo.
Let me give you a secret. We have workers and we have managers. Some workers cannot be managers, just like some managers cannot be workers. A rocket scientist is not required in this matter.
I must also blame the accountant(s) and the directors who failed to monitor the P & L, especially the cash flows, capital expenditures and an area which some companies ignore….accounts receivable. I wonder if the company really needs 100 employees on a continuous basis. Over staffing kills profits, take for instance, if you will break even on a job utilising 40 workers, why the heck will you use 100 workers. Get my drift.
Colour is not the problem with failure in business. Whites fail, Indians fail, anyone can fail. But we cannot use the colour of our skins for excuses in failed businesses. We must not behave stating it’s my business and I can write as many cheques as I damn like.
Bajan – you are talking crap! The problem is the some bajans feel that as soon as they get their first customer that they have arrived, that they have made it in the world. I once heard my David Seale say in an interview that he bought his first Mercedes Benz when he could afford to buy TEN. Most black bajans want TEN when they cannot easily afford one.
Tell me Why – I agree with you totally.
It is this economic system in Barbados and its correlative – the Barbadian financial system – that are primarily responsible for the failure of many Black owned and controlled businesses in the country. From Julie N, Budg Buy, Less Frills, Rick Super Markets, Wyse Shoppers, Shamrock Trading, Rayside Construction Ltd, Winifred Enterprises, Sam Lords Castle Hotel (Tom Grant), to the Dining Club and more, tell the sad and tragic story of scores of fairly substantial Black owned and controlled enterprises that over the many decades that have either collapsed entirely or that have become financially bankrupt.
Whereas, there have been many apparent personal, attitudinal and administrative indiscretions and ill-judgments on the part of many of the former/present owners and principals of these former/present enterprises, and which would some how have contributed to to their demise, there can be no doubt about it that it is the economic and financial systems of this country that have been substantially responsible for the demise of those enterprises over the years. One only would have had to look at the harmful effects of the operations of the TAXATION SYSTEMS, INTEREST RATES SYSTEMS, REPAYABLE LOANS SYTEMS, LACK OF A REGIME OF RENT CONTROL, IMPORTATION OF THE PRICES OF GOODS AND SERVICES FROM OTHER COUNTRIES ETC., that would have been impacting on those former/present enterprises, and that are still impacting on present day Black owned and controlled enterprises, to properly begin to understand the fundamental reasons why too many black businesses are failing in a country that is a predominantly black one. Certainly, if these systems were fashioned to favour Black owned/controlled businesses like how they favour white-owned and controlled businesses, then it would have been almost automatic that there would have been over the years so many strong and vibrant Black owned and controlled businesses across the country, rather than the many weak and marginal ones that have been seen by many of us over the years. We must remember too that the DLP and the BLP have been essentially protecting these economic and financial systems, which as already insinuated are fundamentally against the development of strong and vibrant black business, and hence
it can be no doubt why these said BLP and DLP people so favour big white owned and controlled busineses to the extent that they help to destroy many black owned and controlled businesses or simply watch them collapse entirely or become financialy bankrupt, just to make room for more white/indian owned and controlled business and more access to much of their money value in Barbados.
what about the recondition car dealers? who put them out of business? the white man…with the help of government of course.
Undertaker you are so right.Black people want to appear wealthy without having actul wealth.
Peter Edey’s food is too expensive and not all that great.I’ve had better catered food from cheaper sources.
For black biznesses to be successful in Barbados they must get permission from the White people and the satus quo
Very true. Bob Verdun the white Canadian writes the same thing. Economic relationships have not changed over the years. The minority of filthy rich whites completely dominate the economy through interlocking directorships, monopolies , ganging up on promising black businesses, nepotism and racism.
Bajan // April 18, 2008 at 8:25 pm
For black biznesses to be successful in Barbados they must get permission from the White people and the satus quo.
Black business fail as a result of sound finanacial planning. But I wonder if the above comment does not have significant bearing on black business in this country.
It is painful when we learn about these businesses that have so many people employed who rely on the business for their livlihood and then it goes belly-up. Business owners must appreciate that enormous responsibility which they have to their employees.
Many black biznesses will get shake out now the BLP gone. Do you remember how Jewel Forde and Carol Roberts use to have Edey on CBC morning show almost every week? That is what subsides can do to a business.
I’m biased so I have to say Peter Edey is nothing more than an over glorified line cook. He is an uncultured grotesque pot bellied pig with as much class as a latrine and is twice as offensive. I had professional dealings with Sir MSG (a.k.a. the Butter Chef) in which he forgot he had any sense and started pissing about UWI students calling them vagabonds and not needing UWI’s money and referred to one of the guild representatives (a non-barbadian now holding a high honours degree) as a greasy bush monger. I hope his obese self chokes on his words if the Dining Club closes down. Besides, he grossly underpays his staff so forgive me if I don’t join the cue of mourners laying reefs at the memorial service for his cash cow.
Mr Superlative1 whatever your experience has been with the good Chef to have soured your opinion of him, spare a thought for the 100+ employees!
So much has been said that i might simply add that your last comment re indians, Syrians, whites etc, not asking for help could be due to the fact that these people, ecpecially the white class, do get the assistance up front. Check the declared tax free zones before they even drive a stroke, the tax write-offs or subsidies etc. With all the enefits, you would think they would be grateful and pay their taxes; ask the water dept. or the land tax dept or even their auditors who guide them along a path of tax avoidance AFTER their own wilful evasive strategies are in place. Any wonder these people do not have a problem?
tax evasion is a crime not tax avoidance, so the people u have mentioned r doing nothing wrong.Also the same black businesses can try the same thing but no they more concentrating on the women and the big rides and all the other image showing things that come with it.that is what acocuntants and others r there for to help u pay as less tax as possible.it is just business sense and thus u use the same money back into ur business to make it better for u and ur employees
This has nothing to do with if a business is black, white, blue or green.
A lot of these “businesses” sprung up around the BLP government. Almost 100% of their revenue streams were BLP government directed or Minister directed. As long as the BLP government was in office everything was fine and dandy.
Many of these “busunesses” have huge BLP government Minister investments. The problem for them now is the fact that the people skin out the BLP. Hence the viability of these “businesses” is now in question.
Lynette Eastmond was on down to brasstacks making a passionate plea for the retention of BLP operatives in the new government. If these spies and fifth columnists who are still in place are retain she knows that it will be business as usual.
That is only one of the reasons why I think that David Thompson is taking too long to cleanse the corridors of power of BLP operatives.
Peter Edey is only one of many. Keep your eyes on JOSE Y JOSE, AJAK CONSTRUCTION CO., just to name a couple, there are many more belly-ups coming.
When the BLP took office first of their agenda was the destruction of Julie ‘n. They perceived that David Thompson was a shareholder in Julie ‘n. So withind days of taking office Julie ‘n was in their cross hairs. Liz Thompson led the charge. Remember the kola syrup and inferior products talk. From there on it was down hill for Neville Rowe.
A s public service, we in the PDC have decided to go into one of our member’s old stock of local and international newspapers for the particular news story that forms the basis of this particular blog in order for some bloggers on this issue – and who are obviously ill-informed or uninformed about the news story, to have a better understanding of the said news story, which itself appeared under the caption: Dining Club in deep debt; and the sub-caption: Restaurant looking to Government for help, in the Weekend Nation, Friday, April 4, 2008. So here is a partial reproduction.
Would you , if in government subsidise these failing businesses?
If the answer is yes, from which funds if you advocate zero taxation.
If no, STFU.
What is so disingenous or troubling to our party about this story is that either the journalist who compiled the story or the policy of the newspaper, or both, saw the need to avoid making reference in the story to the fact that the two businesses are indeed black businesses, even though, yes, they are businesses.
Yet, it is as clear as crystal to many Barbadians that the other businesses ( Less Frills, Julie’N, Budg-Buy, Sam Lord’s Castle and Steve’s Dry Cleaning ) mentioned in the story were/are also black owned and controlled. Why refuse to say that they have been/are black owned and controlled businesses? With regard to this story, why this kind of biassed journalism against much black business and enterprise in Barbados, and that reports half-truths and incomplete facts? Is this what we the newspaper reading public in Barbados must be subject to since the Nation Publishing has merged into One Caribbean Media? Doesn’t Mr. Jordan or the Nation Newspaper want to be giving the newspaper reading public of Barbados the impression that they are too racial or ethnic, in regard or consideration of this story? Therefore, if they did not want to give such an impression either of them, or both, should have, with the necessary research done, been able to disprove and report on the fact that in the last ten years or so that NOT ONLY were there from time to time some black owned and controlled businesses collapsing entirely or becoming financially bankrupt, but that there were from time also white, indian, syrian, lebanese, and other such kinds of ownership and control of such businesses that were also collapsing entirely or becoming financiallly bankrupt, and for some of the very identical or similar reasons that black owned and controlled businesses are meeting their demise. So, please Mr. Jordan or the Nation Newspaper, or both, please do such stories again, but let the public of Barbados have a more holistic picture of the facts that pertain to the racial/class ownership and control of multifarious businesses in Barbados that realize their demise, and the reasons therefor, in order for your stories to have greater validity and significance in the minds of the newspaper reading public of Barbados. Please, don’t just cover black owned and controlled business failures in Barbados!!!
To the blogger, Straight Talk
Let us say we had won the government on the 15th of January, 2008, there certainly would have been no need to subsidize at any point in time any such businesses in Barbados. Simply because many of the tremendous and severe impediments (TAXATION, INTEREST RATES, REPAYABLE INSTITUTIONAL LOANS, ENORMOUSLY HIGH BUILDING RENTS, etc,) that currently exist with regard to the further growth and development of enterprises in the industrial and commercial sectors in Barbados, we would have already started removing from those sectors. For, a future PDC Government must see to it that the critical thing at the end of the day shall be to put in place a wide range of incentive and developmental regimes that would help empower and reposition so many corporates and other businesses in Barbados that the future long term sustainable development would be so vastly more secured than now, through the overall social, political, material, and financial systems we would have already then started putting in place, with it being that no businesses shall be helped destroyed by such systems – a situation that shall starkly contrasts with what is happening daily in Barbados, whereby present-day locally adapted Eurocentric-oriented systems in Barbados are wrecking havoc on so many enterprises and individuals in the country. If there were to have been business failures at any points in time then, such would have had to be happening through circumstances beyond our control.
why go public ? If he needs help…get it but what coudl he hpe to achieve by going public.
It leaves a bad taste in my mouth that someone with all those contacts, marketing exposure and market share could fail so miserably and so PUBLICLY…
BTW the whites and Indians fail all the time but they keep they mouth shut!
Pat // April 18, 2008 at 5:59 pm
Did he talk to others in the same industry/line of business? I dont feel sorry for him, you cant give Bajans advice, they know every thing.
Do you know how difficult it is to get helpful information from Bajans in the same field of business, especially if they really know the ropes, thy either give you wrong or incomplete information, whilst trying their best to get your business ideas from you.
I’m also concerned as to how the NIS could allow him to rack up so much debt, they are doing this country and the workers a disservice, if that company had gone belly up those workers would have gotten the good run around.
I am disappointed that chef Edey went public with the apparent bankruptcy of his business and furthermore to be asking government for help. Did he expect to get any sympathy from the bajans. Some bajans hate to see the man on television. He should have kept his business to his chest, who know, know close down and start all over. The white people and indians do it all the time. The hotels stay in business because they hire at peak periods, lay off and hire again. Check any of the hotels and see if they have the same number of employees that they start with in their restaurants/ housekeeping departments in December. No. Something else though why do we always have to turn everything in a black and white issue. There are many small successful black businesses on the island. I have a white friend who had a business, ran into trouble and had much more debt than Edey. All she did was to make a few phone calls and the debt was liquated in a matter of days. The debt also included statutory/corporate payments, etc. She subsequently sold the business.
It appeared to all on the outside that she had a successful business because that is the image that she projected.
It seems to me quite presumptuous to start passing judgement on Peter Edey’s business failure before all the facts are known. Businesses do go bust, it comes with the territory, it is a necessary evil of market forces.
There maybe very good reasons why the business went bellyup, but the fact that this has happened does not necessarily mean that there are not something rotten in the state of Denmark.
Clearly, one of the weaknesses of these black owned and control businesses is the very way they do business. There is a much greater role and understanding for business people (particularly black bajans) in supporting, networking and ensuring that they survive in years of severe external threats.
The way the white bajans do business appears to be quite different to black bajans. People like Peter Edey and others have a right to start putting in place a support mechanism for just such times where the group helps an individual to get back on his or her feet.
In periods of plenty, such networking clubs need to put aside money to help each other out. When the going gets rough, banks and other financial institutions will disappear faster than a snowball in hell.
Unless such businesses build into their planning for such events, they are always going to be pushed to the wall. One of the only ways banks will become more sympathetic is when they see millions of dollars in two or three survival funds for black owned and controlled businesses.
Such businesses ought not to be afraid of asking friends for help. While the government should not be there to bale out such enterprises, there is nothing wrong with helping them to organise themselves. It is good for business, jobs and for Barbados too.
Unless the government has some definite strategies to broaden the base of such a private sector, the country is always likely to be held to ransom by forces that are willing to make abnormal profits, but are not too good at supporting nationalism in Barbados, because simply what is good for their businesses is not really good for the country. These forces often are nothing more than a WTO in microcosm.
Errol Walton Barrow: Barbados is Friend with all, satellite of none! What become of all his visions?
You know, these for you white prostitutes (price 20.000 €) are flown in? For what? All nigger are because stink badly and workshy. Moreover, this person, with a big bust and fat bottom shall drive you with a strict hand for work. (Original quotation from the buyer!)
I have experienced that poor people wanted money with love must earn them. Who is caught gets a severe punishment but the German tart? This one presents herself openly at causes. Everyone knows it; no one does something however.
In addition, the elitist Barbados Turf Club drinks with her Champagnes.
Know you, which are too stupid and too incompetent your colourer jockeys (Richard Lunan) to ride horses? Moreover, that for racing must fly in a white horse girl, who has stolen you the victories. Has the work permission by bribery taken place that for this German jockey? (Original quotation: For the work permission I already has met the right man, it will cost me how much, haha.)
In addition, the elitist Barbados Tuft Club drinks Champagne with it.
You know, this homosexuality is on Barbados forbidden. But this trio cohabited although it was known to the buyer that the German prostitute is lesbian. Moreover, the young rider girly joined in, she wants to make a career really.
In addition, the elitist Barbados Turf Club drinks with them Champagnes….
You know that by the deceit, your jockeys the victories stolen where, with the illegitimately acquired permission and every better has come around chances of winning through this.
With you, the elitist Barbados Turf club drinks no Champagnes.
You know that whole Barbados is for sale, if one only has enough money (original quotation) and the slave-holder can do this continued also in the 21st century the colonial times, the time by foreigners who still think be. You have a Bussa-Roundabout but have you gained the liberty also really? Has it died legitimately? Does the wonderful island belongs to the Barbedians or is not it so that it belongs to some rich white ones and you are still the slaves?
Who drinks champagne with you?
I have experienced, that handicapped people must get themselves with the Beach sale of souvenirs at the life. However, the German, she has also been engaged as a marriage swindler, holds the Nazi-opinion that handicapped persons do not have any right to exist.
She drinks the Champagne only with the High Society in the elitist Barbados Turf club, where they do not annoy handicapped persons.
The Caribbean is the Diaspora of Africa and what has he changed? The authorities know of these wheeling’s and dealings, these of the empires and white embellish up to the head of the government being accepted and tolerated. Moreover, what has happened? Nothing but already, even.
The evidence is in writing there and be checked could.
There all drinks Champagnes on the next Racing-Day with each other again.
In Barbados this one spread, how highly only is us in the life state type on the web pages.
Authors have not looked around the ghettos or districts where arms are already in the morning drunk. THIS cannot be! THIS must not be.
On the other hand, be happy if a white bookmaker writes Linda Dirks in her book over you:
Moreover, all the women are rather cool there. A “Bajan” a coloured person, gets married for example, first, as a rule, if the children- who have anyway different fathers – are great. (Original quotation)
I pray the Lord that America Barak Obama becomes for president. I hope that also confess Barbados to the body of thought of the young wild like Hugo Chavez or Evo Morales, the country heard of the population. Not some rich foreigners who want to manipulate the government. Been able to bribe and deceive the one whom residence permits can get for doubtful persons only because they have money.
Chef Peter , kindly donated a special dinner for 6 at his Barbados Dnning Club, to the Barbados Charity Ball which was held in Toronto June 2007. It was auctioned off and I was the lucky bidder. I arranged with Peter to have the dinner Friday evening, Jan. 24th, 2008. It was magical. Service was outstanding, the wines supurb and the food…..5 courses of fantastically prepared food…Peter’s version of Bajan food, prepared with the sauces that made the food out of this world. Each course explained to us by Peter just prior to serving. What an evening……Peter also has cooking classes which we intend to take advantage of. This was, without a doubt , in the top five of meals that I have had globally.
I agree with comments submitted by anonymous since I was delighted to be invited to share the table that evening as anonymous’ guest. The meal was superb. But more than that was the interesting description of each dish by Chef Peter. One would have to travel far and wide to enjoy better cuisine – if you could find it.
Why would you put a pic of Osama Ben Laden on your logo header.
Sounds like something only a negroid would do. Why don’t coons just die off everywhere? Filthy dirty NIGGER ANIMALS!