forced to write off debts owed to them by its management company.

Mr. Jim Butterfield, managing director of wholesalers Butterfield and Vallis, described debts, estimated to be in the range of $50,000 as "a bitter pill to swallow''.

Another disgruntled creditor, Mr. Louis Ooi, manager of the Crow Lane Bakery, claims to be owed in excess of $10,000 for supplying bakery products to the Burnaby Street restaurant during its almost one year existence.

The restaurant was reported earlier this week to be unlikely to reopen as a restaurant. The Shutters Building is up for sale.

One creditor said Shutters Ltd. had total debts in excess of $300,000. An auction of the restaurant's contents scheduled for tomorrow is expected to raise about $50,000.

Liquor merchants Gosling Brothers, said to be another major creditor, owns the The Shutters Building, which Shutters Ltd. owners Mr. John Roach, his wife Pamela, and partner Mr. Tony Duggan believe is not a viable site for a restaurant due to design constraints.

Mr. Roach owns three Reid Street restaurants -- Chopsticks, The Bombay Bicycle Club and Rosa's Cantina -- while Mr. Duggan is a partner in the Oasis nightclub.

Mr. Ooi said: "For the first month, Shutters didn't pay, and because the restaurant was new, I was lenient about payments. I am familiar with the need to be lenient to restaurants and have faith in them before credit is cut off.'' But seven months ago, Crow Lane decided enough was enough and cut off Shutter's credit and demanded cash payment, said Mr. Ooi.

"For a man who has three restaurants that are reasonably successful to shrug his shoulders and say too bad to creditors is morally incorrect,'' Mr. Ooi said.

Mr. Ooi said he would be satisfied with payment of a portion of the debt to cover his labour and production costs.

He also claimed Shutters did not sufficiently publicise its limited liability company status.

"I never saw the word "Limited'' printed with the Shutters name,'' he said.

Mr. Ooi also is concerned that Mr. Roach may open another restaurant without paying off outstanding debts.

Mr. Butterfield said Shutters' refusal to pay creditors has put a strain on their business relationship.

"There is nothing that we can do to recover the money. There is no legal recourse and, as a result, the creditors take a beating,'' he said. "Often, at least one of Mr. Roach's restaurants does well and will pay on time and another would be marginal. However, Shutters could never address its outstanding balance. Mr. Roach promised that when the restaurant reopened, it would adjust outstanding debts.

"I am sorry to hear that will not happen. Butterfield and Vallis will have to write off debts as a loss,'' he said.

Mr. Butterfield said food suppliers faced a constant dilemma about whether to continue supplying struggling businesses.

"We always try to work it through in the hope of recouping debts, sometimes we do.

"Sometimes, when the tourist season returns, the business picks up and becomes profitable, but we struggle with some accounts and occasionally delivery trucks return without delivering goods because cash payment can't be made.

"It's a competitive business. Whereas overseas suppliers demand 15-day payment, in Bermuda, we struggle to get a 30-45 day payment from some people,'' said Mr. Butterfield.

Mr. Keith Winter, president manager of wholesalers Winter-Cookson, Petty, said his firm was also owed substantial debts, "not far behind'' the $50,000 believed to be owed to Butterfield & Vallis.

He said by the time a cash on delivery arrangement was made, "the damage had been done''.

Mr Duggan and Mrs. Roach refused to comment. Mr. Roach could not be contacted.

Mr. Louis Ooi.