Local businessman John Casling announced yesterday - after 20 years in the retail sector - that his businesses are going in to receivership.

Mr. Casling closed up two of his business concerns over the past weeks - the Smuggler's Cove in Dockyard and Smuggler's Reef on Front Street. But, now Mr. Casling's shop on the corner of Par-la-Ville and Front Street; Buds, Beans and Books is also to be sold or closed.

Mr. Casling said the Triangles boutique and the Buds, Beans and Books shop at the East end of Front Street are not affected by the action.

Mr. Casling told The Royal Gazette that the company - Daina Limited - went in to receivership on Wednesday. Ernst and Young partner John McKenna is acting as receiver, on behalf of the Bank of N.T. Butterfield. No details of the debt amount or creditors was available.

But, Mr. Casling said the shop continues to operate with it being in the bank's interest to sell the business as a "going concern".

And the veteran retailer also hopes to bid on the sale, and reclaim the operation with the ability to make a debt repayment programme with creditors.

Mr. Casling called the legal action "similar to a Chapter 11" in the US, which would give him the opportunity to restructure, and carry on with the business. As with the closing of Smuggler's Cove and Smuggler's Reef, Mr. Casling is citing Bermuda's declining tourist numbers as key factor in the failure of his company.

Of the group of companies, Mr. Casling said: "Daina Limited was incorporated 20 years ago.The strength behind the company in the early years of operation was that it catered to a very solid tourist industry. In recent years we have seen air arrivals plummet by 50 percent over figures attained in 1980," he said.

Mr. Casling said that he has tried to keep the shops going, and staff employed but business is too dire to continue.

"During this difficult period, we - like most retailers - have been forced to reduce overheads, staff and the number of stores that we operate. The (tourist) industry has seen 47 properties close their doors including giants Club Med., Marriott (Castle Harbour), Belmont and Bermudiana," he said.

Speaking of action taken this year - in the face of increasing tourism decline, Mr. Casling said: "At the beginning of 2001 we reorganised yet again and worked on the assumption that Bermuda would achieve the same air arrivals as 2000, which the Bermuda Board of Tourism felt was achievable. The reality again is that by the end of June, tourism was down 15 percent in arrivals. This combined with the events of September 11 left us in a position that we can no longer operate under our present structure. Despite our recent downsizing, the expected level of business was not enough to support our bank and trade debts," he said.