Business

Tuesday, Aug. 05, 2008

Biz Buzz: Owner of SLO salon files for Chapter 7 bankruptcy

$1 million in debt and ‘personal problems’ cited in Tom-Mel shop owner’s bankruptcy

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The longtime owner of Thomas Everett Salon and Tom-Mel Beauty Center in downtown San Luis Obispo has filed for Chapter 7 bankruptcy.

Thomas Everett Setser, and his wife, Kristie K. Setser, both of Shell Beach, voluntarily sought bankruptcy relief from the court July 25. Chapter 7 is designed for those who typically do not have the ability to pay outstanding debts.

According to court documents,Thomas Setser’s largest debt is because of more than $1 million owed on his 4,000-square-foot salon building at 1119 Chorro St. San Luis Capital has claims on the property, with $732,000 owed on it as a first mortgage. Lender Mid-Coast Mortgage holds $333,000 on a second mortgage against the property, according to the documents.

The property was foreclosed on and held for auction the day Setser filed for bankruptcy, but it had no bidders. The property was consequently surrendered to its lender-beneficiaries, said Sheryle Machado of All American Foreclosure, which handled the auction.

Setser said he and his wife face personal problems that have forced them to file for bankruptcy.

“I hate to lose the building,” he said. “Especially since it’s a prime piece of downtown real estate.” But Setser said his payments were expensive, and the cost of the seismic retrofit, which must be done next year, had doubled. He hopes to open a beauty supply store in the next few months, he said, although his plans had not yet been finalized.

Broker Vincent Crooks of Mid-Coast Mortgage says he plans to buy out San Luis Capital, which holds the first deed of trust, then retrofit and remodel the building to lease out to another retailer.

In 1982, Setser founded and operated the salon and beauty shop on Marsh Street with his father. Several years ago, he bought the Chorro Street building and moved his operations there. However, by June this year Setser told The Tribune he was closing the businesses and selling the property.

The 14 stylists who worked at Tom-Mel had to find work elsewhere.

Thomas Setser now works at Faces & Alamode on Osos Street in San Luis Obispo.

—Melanie Cleveland

Local airline to share charter flights

PCF Aviation, located in San Luis Obispo County Regional Airport, recently expanded its service to allow people to share charters and possibly save money. The program allows local businesses and government officials to propose flights in advance so others going to the same destination can join in.

“We have heard from the local community over the years that they need more travel options because the airlines weren’t serving their needs,” said Patrick Mallon, PCF Aviation owner.

—Tonya Strickland

Paso hotel requests 30-room expansion

Paso Robles’ La Quinta Inn has asked the city for permission to expand by 30 rooms.

The 70-room hotel at 2615 Buena Vista Drive, off Highway 46 East, opened in fall 2006. It includes a wine and gift shop.

The expansion has been reviewed by the city’s Development Review Committee and will next go to the city’s Planning Commission.

—Leah Etling

Local designer to downsize

Designer Susan Branch is closing her retail shop, The Heart of the Home, at 122 E. Branch in Arroyo Grande, to focus on her nearby studio where she creates fabrics, rugs, stationery and other items.

Some goods previously sold in the store will be available at national retailers such as Costco. Three employees will lose their jobs as a result of the closure.

—Tonya Strickland