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CNN Live At Daybreak

Enron Collapse Hurts Local Merchants, Charities

Aired January 16, 2002 - 06:31   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The 4,000 Enron employees let go due to the company's financial difficulties are not the only victims of Enron's downfall.

CNN's Ed Lavandera takes a look at the city of Houston and how it's changed in a very short time.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: 17.21.

ED LAVANDERA, CNN CORRESPONDENT: John Ho (ph) struck gold two years ago when he opened Bouray's burrito restaurant in the shadows of Enron's headquarters. (UNINTELLIGIBLE) trickles in these days.

LAVANDERA (on camera): You can tell by the number of cups you have left here that ...

UNIDENTIFIED MALE: Yes.

LAVANDERA: ... how much your business has affected.

UNIDENTIFIED MALE: Yes. Everyday we are finished, finished (ph).

LAVANDERA (voice-over): Enron trader John Ho (ph) has lost 50 percent of his business. Customers have disappeared.

(on camera): So all these tables should be filled.

UNIDENTIFIED MALE: Filled by (UNINTELLIGIBLE) people in a line.

LAVANDERA: And there should be a line out the door.

UNIDENTIFIED MALE: Yes. Every day.

LAVANDERA: And instead you've got a lot of empty tables.

UNIDENTIFIED MALE: Empty tables and no people in a line.

LAVANDERA (voice-over): It's the same throughout the neighborhood, but nearby businesses aren't the only ones feeling the pinch. (UNINTELLIGIBLE)fill the void left by the millions of dollars Enron donates. The company gave 1.4 million to the fine arts museum, more than $5 million to United Way, and 5.6 million to a cancer research center. But most people now talk about Enron in the past tense.

PATRICK MULVEY, ANDERON CANCER CENTER: Enron certainly raised the bar when it came to philanthropy in the community, as well as volunteerism. That was a corporation that people looked at and said that's really what a corporate citizen should do.

PETER MARZIO, DIRECTOR, HOUSTON FINE ARTS MUSEUM: Enron's real role in the city was not the amount of money, it was the leadership and the attitude that went with it.

LAVANDERA (on camera): Enron's collapse has affected Houston life in many ways. One small anecdote illustrates that point, now that 4,000 people are no longer working in downtown Houston, some say traffic is flowing smoother than ever.

(voice-over): Enron's signature is stamped on the Houston baseball stadium. The company agreed to a naming rights deal worth $100 million. Officials say Enron is up on its payments, but if it doesn't keep paying, the stadium could be looking for a new sponsor.

UNIDENTIFIED MALE: (UNINTELLIGIBLE)

LAVANDERA: John Ho (ph) only mission is to save the family restaurant name. The smile on his face will help him sell those (ph) burritos.

(END VIDEOTAPE)

COSTELLO: I hope you could hear him. Sorry about that.

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