HOUSE OF REPRESENTATIVES	H.R. NO.	107
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII

HOUSE RESOLUTION

 

 

urging dbedt to create a business rescue and survival division to begin saving or restructuring businesses like love's bakery before they close.

 

 

        WHEREAS, Love's Bakery is a locally owned business that was founded in 1851 by baker Robert Love who first opened his business on Nuuanu Street; and

 

        WHEREAS, Love's Bakery produces fresh-baked products on Oahu that are shipped to Maui, Kauai, Molokai, and Big Island for deliveries to grocery stores, military bases, restaurants, schools, and hospitals; and

 

        WHEREAS, after 170 years in business, on March 1, 2021, Love's Bakery announced its intent to cease operations and close its Kalihi plant and all retail outlets, and to lay off its 231 employees; and

 

        WHEREAS, due to the COVID-19 pandemic, Love's Bakery lost more than twenty percent of its revenue in 2020, the business became seriously delinquent in rent, and it was unable to qualify for the second round of the Paycheck Protection Program loan; and

 

        WHEREAS, despite being the dominant commercial bakery in Hawaii and having one thousand and eight hundred customer accounts, Love's Bakery was unable to meet demands due to sales and mainland suppliers being impacted from COVID-19 causing delays in ingredients and replacement parts being received; and

 

        WHEREAS, early intervention to help small businesses in the State can help prevent closures and bankruptcies; and

 

        WHEREAS, it may be many years before businesses will fully understand the impact of COVID-19, and small businesses are particularly facing an existential threat; and

WHEREAS, recent surveys by the Hawaii Chamber of Commerce indicate that upwards of 40% of Hawaii's businesses may not reopen after the lifting of the COVID-19 restrictions; and

 

        WHEREAS, small businesses are an important job creation component of the State's economy and mitigation of the economic damage that they face needs to be quickly addressed; and

 

        WHEREAS, businesses need to adjust their business models to meet present customer needs that have changed as a result of the pandemic; and now, therefore,

 

        BE IT RESOLVED by the House of Representatives of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2021, the Department of Business, Economic Development and Tourism (DBEDT) is urged to form a Business Rescue and Survival Division to assist businesses such as Love's Bakery from closure; and

 

        BE IT FURTHER RESOLVED that DBEDT is encouraged to form a coalition that includes bankers, The Small Business Administration, the Minority Business Development Agency, the UH Pacific Business Development Center, and other local business consultants and experts to develop a strike force for rapid response in small business outreach; and

 

        BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to DBEDT, the Governor, and the President of the Senate.

 

 

 

	OFFERED BY:	_____________________________

Report Title:  

Love's Bakery; DBEDT; Task Force