Arcade Restaurant owner Mr. Robert Buser said he has had to let five of his ten staff go and is still losing $1,000 a day as a result of the renovations to the courtyqard of the Walker Arcade.

Even though the latest round of renovations is expected to be completed by month's end, the restaurant may have to be sold or face closure.

But the owners of the building insist the $500,000 worth of renovations are vital for the Front Street arcade, which was built in the 1920s.

The restaurant has been owned by Mr. Robert Buser and Mrs. Susan Buser for about five years. Business really picked up after they began making use of the arcade's courtyard, which had previously been used as nothing more than a thoroughfare.

The arrangement with the Walker Arcade Company Ltd. was informal. The restaurant was charged no extra rent for taking over the additional space.

About half of the business, however, was being generated by the small courtyard area, even though there was more seating inside the restaurant.

The second phase of much-needed refurbishments for the building began in January, eventually closing the courtyard down completely for business.

The upgrading is one step in the company's plan to keep the arcade open during the evenings so that merchants can exercise their trade for visitors. The refurbishments were affected to improve the evening ambiance.

In fact, the plan would fit in with Mr. Buser's plans to keep the restaurant open until 9 p.m. The lack of a courtyard at the moment, however, may be the mitigating factor as to whether or not the current owners will be there to capitalise on evening trade. Mr. Buser said: "We did a better business outside than inside. It was a winner. It put us on a much better financial footing.

"But then the owners wanted to do a major overhaul of the area. It's beautiful and I appreciate their plan. The improved lighting could be great.

But in the process I'm now losing a thousand dollars a day. That's what I've been losing for the last 41 days. It took us five years to be able to pay bills steadily. And that momentum has now been shot.

" I know the owners didn't start these plans with any ill-intent, but we are hurting. I love and appreciate the renovations, but it's become really scary.

It's killer material. At the moment,business wise, it's really tricky.'' Mr. Buser, who is Dutch, is a former hotel chef. He admits the company may have been underfinanced from the beginning.

He said: "The landlords have been so patient with me. They have given me every opportunity, even sometimes when I was behind in my rent. But with the use of the courtyard, things started to turn around.

"The repercussions of taking away the momentum after five years, are `humongous'. It kills you. The situation is suicidal.'' The building's owner is Walker Arcade Ltd., whose managing director, is Mr.

B.W. (Jordy) Walker, director Onions Bouchard & McCulloch.

Mr. Walker said the renovations were needed for for a building that was built in 1928.

The company was prompted to move on the renovations, after Premier Sir John Swan in October 1992 challenged business leaders to help the country to ride out the recession by proceeding with upgrading work that many businesses had considered placing on hold until after the recession.

Mr. Walker said: "We started the work in the winter of 1993, replacing and improving the facade on the front of the building on Reid Street. We finished the improvements there around June.'' The company began a second phase of work in January as the economy began to improve.

They have scrambled to prepare the building for the new tourism season.New electrical cables to service the upper floors were laid. And new tiles were laid in the court yard.

But the company had under-estimated how much work was required. They had to take down parts of the ceilings, shore up old flooring, putting steel beams in to replace old concrete beams. The air conditioning systems for the shops had to be rehabilitated.

Already the company has spent $350,000 and the total bill will come in at nearly $500,000.

But with the new tiles laid, Mr. Buser has been told that he will no longer be permitted to use his metal furniture in the courtyard, for fear that they will rust and ruin the freshly-laid tiles.

Mr. Walker said: "He has been forbidden to put that furniture on the new tiles. As soon as that metal gets wet, it rusts. He needs to replace that furniture with something that won't damage our tiles.'' Mr. Buser is not happy. With the loss in business, he may not be able to buy new furniture.

"It is a miracle that we are open today,'' he said." I may have to sell the restaurant. There are already several interested parties.''