While the tariffs initially imposed by the Trump Administration in 2025 were struck down in court, a lot of economic headwinds remain for businesses this year.Over the course of last year, bankruptcy filings from businesses rose more than 7%. For small businesses specifically, bankruptcy filings were up 67% in the first quarter of 2026 compared to the first quarter of last year.Among the businesses that closed was The Tiny Owl, a children’s shop, and The Brass Owl, a women’s boutique, both owned by Nicole Panettieri in Queens, New York. She joined “Marketplace” host Kristin Schwab to talk about how the last few months have been and what comes next. An edited transcript of their conversation is below.Kristin Schwab: So, we last talked in the fall, and you were about to close the doors on your children's store, The Tiny Owl. Mostly, we talked about, because of inflation, tariff pressures, also a big box store moving into the neighborhood, and you were about to turn your attention to your other shop, The Brass Owl. Where do things stand now?Nicole Panettieri: Unfortunately, I have now closed The Brass Owl. The Brass Owl was open for 12 years, and, shortly after we spoke, things started getting a little difficult. And I wound up taking a job to take myself out of the payroll equation, hoping that would make things financially a little healthier, and I didn't really see the results of that. And then when we got into 2026, things continued to decline, so we made the decision, and I believe it was March of 2026 to close, and our last day was May 9.Schwab: I'm sorry to hear that. I mean, before we get into the business of it, how are you?Panettieri: That's a great question. I'm good. You know, there's so much to be proud of. Twelve years owning a business in New York City, I feel so proud, and I feel like I did more than just have a store; I feel like I really built a community. But it's really sad to see it go away, and to see all my hard work kind of just dissolve. There's like a silver lining, because I have my weekends now. I don't have to work weekends, so there's a little bit of a silver lining.Schwab: OK, we'll take one silver lining. What happened? Was it kind of more of the same of what was happening with what I mentioned at the top about The Tiny Owl? Or what was it like to come to the decision to close, and what was the turning point? Panettieri: 100% the same factors, but it really started with opening the kid’s store, seeing that decline that started draining the money as a total from my overall LLC, and then the big box coming in, and then the economy getting worse, and then the gas prices going up. And it just kept snowballing, and I just really couldn't dig out of the hole anymore. And there's no forgiveness for a small business to say, “Hey, I've had a bad three years, but look at the first nine. Somebody help me out.” So I kind of got to a point where I ran out of money.Schwab: I mean, 12 years is a lot of business expertise and a lot of history. What changes did you see in the last year compared to, you know, the 11 before? Panettieri: I would say mostly the discretionary income in our neighborhood was the biggest change, because so many people would come in and say things like, “Oh, I'm in between jobs,” or, “When I get my next paycheck, I'll come back,” and I heard it more and more. I think people were feeling, you know, even though we've been through so much, we've been through inflation, we went through COVID, I think that people were starting to feel the strain in a way that made it more difficult to shop in a boutique. Schwab: You're pretty ingrained in the local business community. You have a business group you started. What are you hearing from other business owners in your area about what it is like to operate right now?Panettieri: We actually recently just did a survey with our local businesses on some of the issues they're seeing, and a lot of them are saying the same thing: is that the economy is just very difficult right now. We need commercial lease assistance or stabilization. Commercial tenants are responsible for property taxes. We need help there. There needs to be a vacancy tax. And they are seeing a huge slowdown in spending due to the economy, due to inflation, and tariffs, and gas prices, and war, et cetera, et cetera. Schwab: Et cetera, et cetera. You said you got a new job as a buyer. What's next for you? Do you see another business in your future?Panettieri: Sadly, no. I wish the answer was yes. You know, I said maybe, who knows down the road what happens. Life, you never know, you never know. There's no other way to say it. But completely honest, I have a significant financial hole to dig out of, so the possibility of doing a new business would only come if I win the lotto.