Two Ketchum restaurants turned off the lights for good last weekend. McClain's Pizzeria is moving down valley, but East Avenue Bistro is packing it in.
Mike Diem, East Avenue Bistro chef and owner, said the closure was unavoidable due to the business' strained financial situation. Diem started the bistro eight years ago, and said business was good until about three years ago. Since then, he said, it's been "pretty slow."
Much of it was out of Diem's hands.
In April, the Federal Deposit Insurance Corp. took over First Bank of Idaho, the bank that his restaurant relied on. The FDIC acted on the order of the Office of Thrift Supervision, a Treasury Department agency. The FDIC took control of nearly $250 million in loans from Blaine County businesses, including East Avenue Bistro, and from individuals.
With that, the bistro's line of credit ran out, Diem said. And he couldn't convince another bank to loan him the money needed to keep the business going.
But the bad fortune goes back further than that.
"The fire was the start of it," he said, referring to the Castle Rock Fire of 2007, which burned 48,520 acres during 20 days. "The town dried up after that."
Then came the second half of the one-two punch—the economic downturn.
Diem isn't dwelling on it, though. He has moved on and taken a job as executive chef at the Valley Club.
McClain's Pizzeria owner McClain Balmer is also moving on, but he's taking his business with him. After three years in Ketchum, he's relocating to Hailey's "Old Drug Store" building, owned by actress Demi Moore. Balmer said he plans to reopen sometime in October.
He said he's not ready to discuss the move, but it's not because the business is struggling.
"I just had an opportunity for a bigger spot and had to take it," he said.
He said only time will tell if the increase in floor space will translate to an increase in business.
Trevon Milliard: tmilliard@mtexpress.com
