DETROIT – When you are in the business of entertainment and aren’t allowed to entertain people -- it is a very big problem.
The layoffs are mostly part-time employees. Ilitch Holdings says it’s lost 200 event dates.
It previously put a $1 million into a fund along with another million from Major League Baseball to pay part time help.
Chris Granger, the Entertainment group president, sent out an email to employees announcing the layoffs.
“Our industry was the first to shut down and, most likely, will be one of the last to return,” reads the email. "Even as capacity restrictions are relaxed, we remain severely limited in our ability to welcome back guests in any meaningful way. It is in this environment that we have had to make the difficult decision, with respect to our business operations, to put in place some temporary furloughs, as well as layoffs.”
Business analyst Ken Dalto said COVID-19′s economic impact is just beginning to hit and it will hit hard -- especially in the hospitality and entertainment business.
“Many of them will not reopen and I think there will be a permanent reduction in Ilitch and people of his size and the kind of business, a permanent reduction going into the future," Dalto said.
Dalto believes it’s going to take another year before the entertainment and hospitality industries start to rebound and even longer for a full rebound.