WHY ARE WE IN DEBT?
The rent for the VODIČKOVA studio is 165,000kc each month. The rent for January to May 2021 is 825,220 kc.
The first instalment of the loan fo reconstruction of the new studio comes due in May 2021 and it is 95,000kc. In total, we owe 920,220 kc.
The rent for the PANKRÁC studio is 202,675 kc. From January to March, we received a 30 % discount and during these months we were able to pay 121,605kc from our own pocket. However, the accumulated rent for this period amounts to a total of 709,364 kc.
Unfortunately, we are no longer entitled to any rental subsidy for 2021 from the state.
WHY DO WE CROWDFUND FOR THE TEACHER´S SALARIES AFTER REOPENING??
We would first like to point out because of the Covid studio closure our teachers have been teaching online classes without pay for more than 8 months and we THANK THEM FROM THE BOTTOM OF OUR HEARTS!
Otherwise, we would not be able to offer you Live Stream Classes. However, after reopening, we must repay their generosity. Due to the focus of our type of yoga (practicing in the heat of 42 ° C), our busiest times are the autumn and winter months. In 16 years, we have verified that these dominant months "subsidize" our summer OFF season, where sales revenues fall by almost 50%. The income is only enough to cover the running of the studios and overhead costs. For the second year in a row, the government is allowing us to reopen in our OFF season without a financial cushion. That is why we already know with certainty we will not have the funds for teachers' salaries for the summer months.
IF WE DON´T REACH THE 2nd MILESTONE WE WILL NOT OPEN STUDIO PANKRÁC FOR REAL?
Although it breaks our hearts, unfortunately this is correct. We are still negotiating the rent conditions with the property owners but the Pankrác studio cannot reopen with the current debt of 425,000kc.
HAVE YOU NEGOTIATED WITH THE LANDLORD OF THE VODIČKOVA STUDIO FOR REDUCTION OR POSTPONEMENT OF THE RENT?
Negotiations are ongoing. For 2020, we received a 3-month discount of 30%. We paid the other months’ rent completely. The owner allowed us a deferred payment schedule.
From January to June 2021 the discount was not provided, the owner has postponed the repayment schedule. A discount for July to December 2021 is under negotiation.
TEACHERS/MANAGEMENT/EMPLOYEES...HAVE YOU APPLIED FOR SUPPORT FOR EMPLOYEES OR SELF-EMPLOYED PERSONS?
Most Bikram Yoga Prague instructors are employed full time by another employer and teach yoga as a side activity.
Bikram Yoga Prague has 3 full-time employees, for which it has always used the subsidy.
Our instructors have been teaching online lessons for over 8 months without pay. For the second year in a row, the government has allowed us to open in our OFF season. We have not had a chance to create a financial reserve for the summer months, and that is why we know with certainty that funds for teachers' salaries will be lacking. Revenues in the summer season fall by 50% and are only enough to cover the running of studios and overhead. From May to September, the income coverage of instructors is subsidized by previous strong months.
HAVE YOU APPLIED FOR A COVID RENT FOR CLOSED PREMISES?
Yes, BUT Vodičkova had its grand opening planned for April 1, 2020. According to the conditions of subsidies for 50 % of the rent, only establishments that were open on March 13, 2020 could apply. Therefore, our application to support the Vodičkova studio was rejected and we had to pay the full rent with zero income. In the following wave, October to December 2020, we applied for both studios and received help in the amount of 50 % of the rent in full only for the Pankrác studio. Studio Vodičkova again had an unfavorable situation, because the amount of support was calculated according to the rent for the first quarter of 2020. The subsidy was reduced despite the fact that we have long paid rent in full and again with zero income. Unfortunately, despite the fact that the state ordered the closure until the end of May, the state did not list any additional rental subsidies for the entire year 2021. New subsidies UNCOVERED COSTS are far from reaching the same amounts as RENT SUBSIDIES.
WHY ARE WE NOT ELIGIBLE FOR FINANCIAL HELP?
Bikram Yoga Prague is a small family business. Tereza Bonnet Šenková founded it in 2006 and has been leading it with the help of her husband and the closest "aunts" for 15 years. So far, this "educational" method has proved successful. If the whole family manages to get the business back on track, we intend to continue in this way.
WERE ALL POSSIBILITIES OF SUPPORT, APPLICATIONS, SUBSIDIES EVALUATED BY EXPERTS?
Yes. This accounting task is entrusted to our accounting company, which has competent persons in its team, who have always evaluated which bonuses / subsidies / antiviruses / etc. are the most advantageous and possible for us within the framework of current government regulations and information.
In this regard, we believe that we have done our utmost with what has been offered by the government.
Unfortunately, the state did not provide so many opportunities for support.
DO I UNDERSTAND CORRECTLY THAT WITHOUT THIS ONE-OFF CROWDFUNDING EVENT, THE OWNERS OF THE BUILDINGS WOULD HAVE SENT YOU INTO INSOLVENCY?
Yes, the situation is really so serious. The loan for the reconstruction of the new Vodičkova studio amounts to CZK 4,700,000, so the monthly payment for this loan is CZK 156,000. We have now negotiated a loan deferral for 5 months, but after this period, this monthly payment will be increased by the deferral period. Therefore, immediately after opening, our commitments will be huge. So far, the predictions of the development of the epidemic are not entirely favorable to the assumption that we will be able to open 100% of the capacity of both studios in terms of the number of our clients in a particular lesson.
We are still negotiating with the owners of Vodičkova and Pankrác buildings on a new repayment schedule, because the debt has been accumulating from January to May.