Derek Neary
Northern News Services

Fort Simpson (Sep 06/02) - The sign in the window at Nats'enelu has read "Closed" for most of the summer.

Martina Norwegian is hoping to turn that sign over, but it's going to take community support and possibly more assistance from the NWT Development Corporation.

Martina Norwegian: "It's just mystifying. Why would they throw away that kind of money and not do anything."

The Dene-inspired fashion business, which produces garments and crafts, lost its chief designer and general manager when D'Arcy Moses left for Winnipeg in April. Since then the two full-time seamstresses and a host of part-time home workers who supplied beadwork and tufting have been unemployed.

Norwegian has been trying to keep creditors at bay and has turned to the Department of Resources, Wildlife and Economic Development (RWED) for help. They are analyzing the books to ascertain Nats'enelu's financial position. An audit will follow, Norwegian said.

Modest beginnings

It was a sewing circle that gave rise to the business five years ago. As the enterprise grew and more capital was needed, NWT Development Corporation was signed on as Nats'enelu's minority shareholder in 1999. But Norwegian is disappointed with the Development Corporation's recent inaction and unwillingness to extend more funding.

"They haven't even called me since June to see how we're doing ... they haven't done anything to help," she said. "It's just mystifying. Why would they throw away that kind of money and not do anything."

Fred Koe, president of the NWT Development Corporation, said although Nats'enelu is a private venture, "the government has invested significantly into that company." He wouldn't disclose an exact amount, but said the figure would be available in the Development Corporation's upcoming financial report. He noted that RWED and the Business Credit Corporation have also lent financial aid to Nats'enelu.

Koe said he doesn't even know whether Nats'enelu has ever turned a profit because the Development Corporation has never received any audited financial statements, just unaudited ones.

"It's a major concern," he said.

The corporation's preferred shares give it no control over management of the operation. Koe added that advice has been provided to Norwegian, but "it's her prerogative to accept or reject advice.

"We just don't have that kind of money to reinvest in companies that are in trouble," he said. "Basically we're not here to bail out companies. We're here to invest and help and try to develop them."

Yet Norwegian argued that the Development Corporation has backed some of its clients for many years, even though they have taken losses. With Nats'enelu, the Development Corporation has been demanding repayment of a loan within three years, said Norwegian.

"My argument was, as with any business, we don't see a revenue turnover for about four years," she said. "I don't think that after all this time that we should be the example. Why are they deciding to pull the rug now?"

Koe said the Development Corporation's other joint ventures and subsidiary companies may have different terms agreed upon through initial negotiations.

There is a possibility that the Development Corporation could become Nats'enelu's majority owner, thereby absorbing all existing debts, but all the company's financial details would have to be obtained and evaluated first, according to Koe. He added that no applications to become a subsidiary have been received from the company.

Lacking expertise

Norwegian acknowledged that in addition to his designing, Moses was thrust into a financial role even though he didn't have much expertise. Furthermore, the grooming of a successor was neglected during his tenure.

"We were so busy. We didn't get onto that. I guess we didn't expect D'Arcy to up and leave," she said.

Prior to leaving Fort Simpson, Moses was pursuing a licensing agreement with a clothing production company based in Winnipeg, the company that now employs him. At that time, Moses suggested that the agreement should generate enough revenue to keep Nats'enelu afloat. Norwegian said she hasn't "seen a dollar" from that agreement.

"I don't know where it's going," she said, adding that Moses has called her on occasion, however.

Moses couldn't be reached by Deh Cho Drum for comment.

Calls for residents to join Nats'enelu's board of directors over the past few years have failed to attract any reliable help. Norwegian has been the lone member at the table since last spring.

On a promising note, a luncheon meeting held at Nats'enelu in late August brought in 10 community members. A follow-up meeting was scheduled for Wednesday.

"There were a few ideas. One of the ladies said she would like to do a fashion show on a smaller scale," said Norwegian. "I want to reorganize and restructure ... (make it) more community oriented. I don't think closing the doors is an option ... It has potential but it just needs somebody to pick it up and run with it."