Lake Havasu City Business Closures: A Sign of the Times or Just Another Day?

The local economy is facing challenges as several restaurants shutter their doors, and Big Lots announces its impending closure. This trend raises questions about the sustainability of businesses in the area.

Recent closures include Rebel BBQ, Panarelli’s Italian Subs, and most notably, Casa Serrano, which permanently closed on October 14, 2024. A heartfelt message on the door expressed gratitude to loyal customers, highlighting the restaurant’s long-standing presence in the community.

Maleah Nelson, a former employee at Casa Serrano, shared insights about the closure. According to her, the owners opted for retirement, leading to the restaurant’s end. She described the family behind the business as hardworking and dedicated, lamenting its loss.

In addition to local restaurants, Big Lots plans to close its Lake Havasu City store, part of a broader trend following the company’s Chapter 11 bankruptcy filing in September. According to the latest reports, this location is among 56 closures across 27 states.

The closure announcement specifically mentioned that the Lake Havasu store was the only location impacted in Arizona. The manager had no additional details, but an employee’s daughter confirmed that the store is expected to close by year-end.

Big Lots becomes the second major retailer to close in the area this year, following the earlier departure of 99 Cent Store, which was replaced by a Dollar Tree. As large retailers increasingly announce closures, the trend is stark. A report from CoreSight Research shows a predicted closure of almost 3,200 retail locations in 2024.

Despite the downturn among big box stores, small businesses in Lake Havasu City present a mixed picture. New establishments are opening even as some close. James Gray, director of the Partnership for Economic Development, indicated that while closures exist, new ventures, including two downtown restaurants, complicate the narrative.

Data from the U.S. Bureau of Labor Statistics reveals that many businesses in Arizona struggle to survive long-term. Approximately 25.7% fail within their first year, and 65.9% do not make it past a decade. Ultimately, the challenges seem to vary by industry.

However, the entrepreneurial spirit remains strong. The United States Census Bureau reported over 103,000 new business applications filed in the western U.S. in September alone, with Arizona ranking 15th nationally for new applicants last year. Additionally, the city’s business license record indicates that 263 new businesses have opened this year.