Business
After the fire, a crisis for Altadena's small-business owners: 'Who is going to want to come here?'
The blackened remains of the neighborhood pet store next to a bank untouched by the fires.
A burned-down museum of bunny memorabilia separated by red caution tape from a strip mall, all of its businesses still standing.
A longtime bike shop, reduced to a heap of twisted metal, steps away from a pristine Thai restaurant with a handwritten note taped to the door: “Sorry, we are closed due to power outage and extreme winds. Come back soon!”
Up and down Lake Avenue, the main commercial thoroughfare in Altadena, are stark signs of the Eaton fire’s aftermath: the businesses it subsumed and the ones it spared. More than 9,400 residential and commercial structures were destroyed by the blaze, a catastrophic loss for the tight-knit community nestled in the foothills of the San Gabriel Mountains.
All told, estimates of the total economic loss from last month’s wildfires in and around Los Angeles have swelled to more than $250 billion, making it one of the costliest natural disasters in U.S. history. Nearly 1,900 small businesses were located within the fire burn zones and were probably affected, according to an estimate from the L.A. County Economic Development Corp. Those businesses supported roughly 11,400 jobs.
Now, whether their stores survived the flames or not, small-business owners say they are facing a crisis. Those who lost their businesses are wading through insurance claims and loan applications while wrestling with whether to rebuild. For owners whose stores remain, there’s damage from smoke and ash, utilities that have yet to be restored and the fear that customers won’t return for a long time, if ever.
“There’s no community anymore,” said Leo Bulgarini, whose eponymous gelateria and restaurant narrowly escaped the fire. Just on the other side of the parking lot, the neighboring Bunny Museum burned to the ground, as did his home about a mile away.
“Who is going to want to come here?” he said. “I keep hearing, ‘Bulgarini is alive!’ It’s not alive.”
Here are three stories from Altadena entrepreneurs and the businesses they built.
Burned down but not out
When he was 14, Steve Salinas got a job at Steve’s Pet and Bike, getting paid $3.75 an hour to tinker with bicycles. The combination shop was like something out of a child’s dreamland, a place where a kid could walk in to admire a shiny Schwinn and leave with a pet turtle.
Through the years, Salinas honed his skills at bending back damaged bike frames and building custom five- and six-seater bikes, but his favorite part was the connection he forged with his customers.
Steve Salinas visits the site of his burned-down bike shop. He began working at the store when he was 14.
(Carlin Stiehl / For The Times)
The pet and bike shops eventually split into two separate businesses — one right around the corner from the other — and Salinas bought the bike side in the late 1990s.
The morning after the Eaton fire started, Salinas drove to check on his mother’s house. It was safe. He then went to a friend’s house and saw the home two doors down was engulfed, so he climbed onto the adjoining roof with a hose until a water truck arrived.
The home made it, but he soon learned that his bike shop had not.
A few days later, Salinas walked through the charred ruins in disbelief, inhaling the smell of burnt tire tubes and noticing that even items made of aluminum had been destroyed. He estimated he lost about $250,000 in tools and merchandise.
Now in his mid-50s, he is determined to rebuild the shop that has been a part of his life for four decades. Since the pandemic began, Salinas said, the company had been doing very well — he estimated that business had picked up by about 30%.
Although Salinas had general liability insurance, he didn’t have fire insurance — it would have more than tripled his premium costs, he said, to around $4,000 a year.
He has one employee, a longtime bike mechanic who started a GoFundMe for the business. Salinas said he plans to use the money to reopen in a pop-up location until Steve’s Bike Shop is rebuilt.
These days he is staying busy collecting donated bikes, tuning them up and gifting them to residents who lost their homes.
“We’ve got to keep going,” he said. “Now it’s just a matter of gearing your head toward how to move forward and try to put it back together.”
Four walls and no customers
Three weeks after the Eaton fire began, Ashima Gupta unlocked the glass doors at Code Ninjas, a learning center for kids that she bought in October for $80,000.
The center had been a cheerful place where children ages 5 to 14 would come after school and on the weekends to build Legos, practice their coding skills and design and print 3D toys on site.
To help grow the franchise location, Gupta, 45, had spent $10,000 in marketing and reached out to local companies to pitch partnerships. New members were signing up in droves, and she had six part-time employees. By the end of the year, she said, she was pulling in $15,000 in revenue a month from the center and was breaking even financially.
When the fire swept through Altadena, Code Ninjas survived along with Bulgarini and eight other strip mall tenants. But Gupta said they are “silent casualties” of the inferno: technically intact, but effectively put out of business for the foreseeable future.
Ashima Gupta, owner of Code Ninjas, stands inside the learning center.
(Carlin Stiehl / For The Times)
“Who will bring their children here? We need families, and they’re gone,” she said as she made her way through the center on a recent Tuesday morning. The utilities were still out, and a fine layer of ash coated the floor, the orange benches, the foosball table.
Scrawled in pink marker on a white board were the words, “Tuesday, January 7th. What was the spider’s New Year’s resolution?” An eerie reminder of the day everything ground to a halt.
She said 95% of her customers have already canceled. So many lost their homes and relocated to neighborhoods far from the Code Ninjas location that it didn’t make sense for them to continue paying their memberships.
Gupta herself doesn’t think the center — an untouched island in a vast landscape of wreckage — is currently suitable for young children. She wouldn’t bring her own 10-year-old daughter here, she admitted.
“I just can’t get my head around what to do,” she said.
Gupta anticipated it will take two to three years to recover. She and some of the other strip mall tenants are considering writing a letter to their landlord to ask for a reduction in their rents; an invoice just arrived for the nearly $6,000 a month she pays for the 2,500-square-foot space.
Shawn Shakhmalian, right, the owner Nancy’s Greek Cafe and adjacent bakery, visits Gupta at Code Ninjas three weeks after the Eaton fire. Both were waiting for the utilities to be restored in the strip mall plaza, which survived the flames.
(Carlin Stiehl / For The Times)
She’s also waiting on her insurance, which has been backed up with more pressing residential property claims, she said.
Since the fire, people have kept asking her: “‘Is your house burned?’ No. ‘Is your center burned?’ No,” she said. “‘Then just wait.’”
After five decades, pet shop calls it quits
Carrie Meyers started running the register of Steve’s Pet and Bike as a teenager in the 1980s.
Her uncle Steve Segner owned the shop, and she grew to appreciate the cacophonous menagerie of birds and loose crickets. In 2000, Meyers bought the pet portion of the business, officially turning what had begun as a side gig into her life’s work.
Under her ownership, Steve’s Pets sold puppies, kittens, rabbits, rodents, birds, fish — even goats and small pigs. Meyers was greeted each morning by a green parrot named Pesto, who became the shop’s mascot and would caw, “Hellllow!”
When Meyers’ children were young, they napped in a crib in the shop as she zipped around, tidying up and taking inventory. Grooming services became a bigger part of the business in recent years, as had selling organic chicken feed and dog food made from avocados.
Like many small-business owners, she found it harder and harder to compete with retail giants such as Target and Amazon. But she weathered those challenges, along with economic ones like the 2008 financial crisis and the recent Hollywood strikes, all of which hurt her sales.
“I’m still here,” Meyers would tell customers who called to check in. “I made it again. I’m lucky.”
Until last month, when the Eaton fire tore through Altadena, destroying both her home and her pet shop.
“There’s nothing left,” she said. “Nothing.”
Meyers, with her dog Jojo, said she doesn’t plan to rebuild Steve’s Pets.
(Carlin Stiehl / For The Times)
When Meyers evacuated from her home in the dark of night on Jan. 7, the fire was still a good distance from the shop and she knew shoving the animals into her car would have stressed them.
The next morning, Steve’s Pets was still standing and she drove over to evacuate the animals. On the way there, she received a call saying the shop was engulfed in flames.
All the animals, including beloved Pesto, were gone.
Distraught and grieving the losses, Meyers also had to worry about the livelihoods of her seven employees. She sent a group text encouraging them to get on unemployment, and after receiving $25,000 from insurance, she issued paychecks. Her daughter, Hannah, started a GoFundMe to help the employees.
Meyers doesn’t plan to reopen. She said she needs to focus on rebuilding her home, and at 56, she’s ready for a break.
A post on the shop’s website thanking former customers now uses the past tense: “Steve’s Pets was a family-owned and operated pet store and grooming shop in business for decades.”
For the second time this week, President Trump has threatened to disrupt trade with a close ally for retaliating in a trade war that he started — a tactic that could lead to compromise, or to economic spats that spiral further out of control.
On Thursday morning, Mr. Trump tried to cow the European Union into submission, threatening in a social media post to put a 200 percent tariff on European wine and Champagne unless the bloc dropped a 50 percent tariff on U.S. whiskey. The European Union had imposed that tariff in response to levies that Mr. Trump put on global steel and aluminum on Wednesday.
Mr. Trump deployed a similar tactic against Canada on Tuesday, threatening to double 25 percent tariffs on Canadian steel and aluminum to try to get Ontario to lift a surcharge on electricity sold to the United States. The province had imposed the charge after Mr. Trump put other tariffs on Canada this month.
After Ontario suspended its surcharge, Mr. Trump walked back his threats.
Over the last several weeks, Mr. Trump has presided over a confusing and potentially economically devastating back and forth of tariffs and tariff threats, playing a global game of chicken as he tries to get some of the United States’ closest allies and trading partners to back down.
Mr. Trump has wielded the tariff threats without regard for their economic consequences and, increasingly, seemingly without regard for the impact on stock markets. The S&P 500 slumped again on Thursday after Mr. Trump threatened Europe and reiterated at the White House that he would impose big tariffs.
When asked whether he might relent on Canada, which sent a delegation to the United States on Thursday to try to calm trade tensions, Mr. Trump said: “I’m not going to bend at all.”
He said the United States didn’t need imports like lumber and energy from Canada, one of America’s largest trading partners. “We don’t need anything they have,” he said.
The president, who spoke to reporters during a meeting with Mark Rutte, the secretary general of the North Atlantic Treaty Organization, acknowledged that his tariffs could cause “a little disruption” but said that “it won’t be very long.”
“And we have to do this,” he said. “I’m sorry, we have to do this.”
Treasury Secretary Scott Bessent, asked on Thursday about market volatility and the economic effects of tariffs, said the White House was not concerned “about the short term.”
“We’ve got strategic industries we’ve got to have,” Mr. Bessent said. “We want to protect the American worker.”
Commerce Secretary Howard Lutnick also warned other countries against retaliating against the United States, saying in an interview on Bloomberg TV on Thursday that Mr. Trump could respond temperamentally.
“If you make him unhappy, he responds unhappy,” Mr. Lutnick said.
Mr. Lutnick said some countries, like Britain and Mexico, had thoughtfully examined how they did business with the United States. But for countries that respond with further tariffs, “the president’s going to deal with them with strength and with power,” he threatened.
It remains to be seen whether other countries will retaliate with their own levies and, if so, how many economic disagreements may spiral into true tit-for-tat trade wars. Mr. Trump has promised more levies on cars and other products to come in April.
Some governments, like those in Australia, Brazil, Britain, Japan and Mexico, have chosen not to retaliate for now, as they try other routes to defuse tensions with Mr. Trump. But China, the European Union and Canada have all made different calculations.
Those governments may be encouraged by domestic political constituencies to stand up to Mr. Trump’s bullying or, in the case of Europe and China, emboldened by the size of their economies.
Some European officials said they wouldn’t bow to pressure. In a statement on Wednesday, Ursula von der Leyen, the president of the European Commission, the bloc’s executive arm, said that Europe needed to act to “protect consumers and business” and that it would take “strong but proportionate” countermeasures.
“We will not give in to threats,” Laurent Saint-Martin, France’s foreign trade minister, said in a post on X. Mr. Trump “is escalating the trade war he chose to unleash,” he added.
Canadian officials have also generally been outspoken against the United States, a dynamic that may be amplified by a political transition and an upcoming federal election in Canada.
“If you hit us, we will hit back,” Chrystia Freeland, a former Canadian minister of finance, said in an interview on CNN on Thursday. Ms. Freeland said that Canada was small but that it had leverage in the economic relationship because it was the largest export market for the United States by far.
“Canada is a more important export market for the U.S. than China, Japan, the U.K. and France combined,” she said. “You guys are the country that invented the phrase ‘the customer is always right.’ Well, we’re your biggest customer.”
Mr. Trump may be gambling on the idea that other countries are more dependent on the U.S. market than the United States is on them. Canada sends about 80 percent of its exports to the United States, while roughly 17 percent of U.S. exports go to Canada.
But being larger and more distant, the European Union and China are less reliant on American buyers. The United States is the destination for about 20 percent of E.U. exports and about 15 percent of Chinese exports.
On Thursday, Canada initiated a dispute at the World Trade Organization over the steel and aluminum tariffs that Mr. Trump had imposed the day before. China initiated a suit over a separate tranche of tariffs last month. But the W.T.O. challenges are largely a symbolic gesture, since the United States disabled the organization’s dispute settlement system in Mr. Trump’s first term.
Canadian officials were expected to meet with Mr. Lutnick to discuss trade issues on Thursday. A European spokesman said Maros Sefcovic, the European Union’s trade commissioner, would talk with both Mr. Lutnick and Jamieson Greer, the U.S. trade representative, on Friday.
Jeanna Smialek and Matina Stevis-Gridneff contributed reporting.
Household-name companies, like Walmart and Meta, have scaled back diversity, equity and inclusion goals in recent months. These brands are part of a widespread retreat happening across corporate America, according to a New York Times analysis of annual financial filings. It has been as noticeable among tech giants as among drug makers, concert promoters and nearly every sector of the U.S. economy.
So far this year the number of companies in the S&P 500 that used the language “diversity, equity and inclusion” in these filings has fallen by nearly 60 percent from 2024.
The Companies That Mentioned ‘Diversity, Equity and Inclusion’ Each Year
Source: Securities and Exchange Commission
Seventy-eight percent of companies — 297 out of the 381 that have filed their reports so far this year — continue to discuss various diversity and related initiatives, according to the Times analysis, which examined a decade of financial filings known as 10-Ks that public companies submit each year to the Securities and Exchange Commission.
But many of them have softened or shifted previous language, by removing the word “equity,” for example, or emphasizing “belonging” rather than D.E.I.
Major corporations began to shy away from taking strong stances on D.E.I. before President Trump re-entered office, but the trend accelerated rapidly after.
These filings aren’t the only reflection of what companies are doing, or declining to do, to promote diversity, equity and inclusion — but they offer one view of changing stances in the words of the companies themselves. Plenty of language in these filings changes from year to year, though the Times analysis focused specifically on language about D.E.I.
In some ways, the shift reflects a pattern of companies chasing what seems most socially and politically expedient. After the killing of George Floyd in May 2020 and the Black Lives Matter protests that followed, many companies denounced racial injustice.
By 2022, over 90 percent of the S&P 500 had language about D.E.I. in their annual filings. Uber, for example, “committed to becoming an anti-racist company.” Best Buy wrote in a quarterly regulatory filing that “in the wake of George Floyd’s death” the company would strive to “address racial inequities.”
By 2024, the social pressure had started to reverse — “critical race theory” was labeled by some senators as “activist indoctrination,” and many states took steps to restrict D.E.I. programs at universities. This backlash was accelerated by a Supreme Court decision in 2023 that struck down affirmative action in college admissions. While that decision was not directed at corporations, some law firms began to face lawsuits over fellowships that were open only to marginalized groups, and other employers started to pay more attention.
Mr. Trump then took direct aim at corporations. Soon after his inauguration in January, he issued an executive order that instructed federal agencies to investigate “illegal D.E.I.” in the private sector. He changed the staffing and leadership of the Equal Employment Opportunity Commission, which enforces the country’s anti-discrimination laws, putting in place an acting chair who said her priorities included “rooting out unlawful D.E.I.-motivated race and sex discrimination.”
Lawyers who have been helping companies navigate the new legal landscape said that some executives were worried about public disclosures on diversity efforts. Company leaders might want to keep their diversity initiatives in place, but realize that describing D.E.I. goals in public documents, like 10-Ks, could prompt scrutiny or government investigation. So some have found ways to hedge or otherwise tweak the language they use to make it more vague.
Used the same language about employee resource groups from 2021 to 2024.
Added in 2025
Dow’s 10 ERGs represent a workforce rich in diversity of thought, perspectives and backgrounds
Used language about historically black colleges and universities from 2021 to 2024.
Added in 2025
We take action to improve the hiring, retention and promotion of a more diverse workforce that reflects Adobe’s global footprint. We invest in partnerships and events to grow our pipeline and engage candidates across underrepresented communities.
Dow Chemical and Adobe did not reply to requests for comment on the shift in language in their annual reports.
“You don’t want to provide a road map for critics to look into what you’re up to,” said Jon Solorzano, a partner at the law firm Vinson & Elkins who counsels companies on governance issues, including D.E.I. “Talking about it externally is now viewed as a riskier proposition, while continuing to talk about it internally is maybe less risky.”
Because executives were preparing their 10-K reports right as Mr. Trump took office, Mr. Solorzano noted, they were able to move quickly to drop public disclosures on D.E.I., though actually unwinding the programs will take more time. “There’s an annual review of 10-Ks, and the annual review happened to coincide with new fears,” he added.
Other D.E.I. experts noted that some companies are shying away from the term “equity” because it tends to attract more scrutiny than “diversity” or “inclusion.”
“The E in D.E.I. is the real problematic one,” said Musa Al-Gharbi, a sociologist and an assistant professor at Stony Brook University who has written extensively on diversity programs. “To actually achieve equity often requires policies that are alienating to a lot of stakeholders.”
Used the same D.E.I. language from 2021 to 2024.
Added in 2025
we focus on a culture that values all employees
Used the same D.E.I. language between 2021 and 2024.
Added in 2025
underpinning these focus areas are ongoing efforts to cultivate and foster a culture built on innovation, health, well-being and safety, inclusion and belonging where the company’s employees are encouraged to succeed both professionally and personally while helping the company achieve its business goals
Vertex Pharmaceuticals did not reply to a request for comment on the shift in its 10-K language on D.E.I. It still has a page on its website on the topic, something that other companies have also maintained — even as they have softened the language on it in their annual regulatory disclosures.
In a statement, a Johnson & Johnson spokeswoman said the company “has always been and will continue to be compliant with all applicable legal requirements and remains dedicated to the values in our credo.”
Given the mounting pressures from the Trump administration, it is perhaps surprising that hundreds of companies have maintained D.E.I. language in their 10-Ks this year. Delta Air Lines wrote: “Our commitment to diversity, equity and inclusion is critical to effective human capital management.” Arthur J. Gallagher & Company, the insurance brokerage, reported the share of its employees and managers who are “racially/ethnically diverse.”
(The New York Times, which is not in the S&P 500, shortened the section on diversity in its 10-K this year. Danielle Rhoades Ha, a spokeswoman for The Times, said: “We still have the same diversity and inclusion-related programs that we did last year.” She added: “Specific language in 10-Ks changes year to year.”)
Still, the pendulum is swinging away from D.E.I., many corporate lawyers say, and the momentum can be hard to resist. Companies often tend to follow the crowd, whether that means adopting a certain approach to management (think “agile”), a popular strategy on innovation (like “design thinking”) or a job title that many of their peers are suddenly adding (“chief of staff”).
But fads often have shallow roots, and companies might drop that practice as soon as it opens them to social critique or legal scrutiny.
“Companies will adopt these fads and fashions, and they’ll do it for legitimacy and reputation management purposes and never fully adopt it,” said Ranjay Gulati, a Harvard Business School professor. “Then it’s a self-fulfilling prophecy, because it doesn’t achieve their business goals so it goes out of fashion and they dump it.”
2021
In July 2020, we publicly committed to becoming an anti-racist company
2022
In July 2020, we announced 14 commitments to becoming a more anti-racist company
2023
In July 2020, we announced commitments to becoming a more anti-racist company
2021
The Company believes that diversity and inclusion is central to high employee engagement.
2022
The Company believes that diversity, equity and inclusion (“DE&I”) is central to high employee engagement.
2023
The Company believes that diversity, equity and inclusion (“DE&I”) is central to high employee engagement.
2024
The Company believes that diversity, equity and inclusion (“DE&I”) is central to high employee engagement.
2021
In July 2020, in response to events in the U.S. and around the world that sparked overdue reflection on racism and discrimination in our societies, we announced ambitious goals to strengthen the company’s diversity from the top down that we will strive to obtain by the end of 2025
2022
We remain committed to reaching the ambitious goals we set to strengthen the company’s diversity from the top down
2023
We remain committed to reaching the ambitious goals we set to strengthen the company’s diversity from the top down
2024
We remain committed to making continuous progress toward our ambitious representation goals — to strengthen the company’s diversity from the top down
DuPont declined to comment and Uber did not reply to a request for comment.
A spokesperson for Live Nation wrote in a statement: “While the legal landscape may be evolving, our commitment to inclusivity and Taking Care of Our Own will always remain at our core.” Some of Live Nation’s previously announced diversity goals stated 2025 as the target year to reach them, and previous 10-K documents had said the company was making progress toward achieving them.
An additional factor in the pullback, lawyers say, is some executives’ realizing that they might have set goals in 2020 or 2021 that they cannot achieve without aggressive D.E.I. efforts that might be targeted with lawsuits or investigations in the coming months.
Since President Trump took office, the E.E.O.C. has made clear that it intends to investigate what it sees as D.E.I. overreach, which could include specific targets for hiring employees of underrepresented groups, or executive bonuses tied to meeting those goals.
“Some goals based on race and gender that were set during the Biden administration were not reflective of availability in the work force, potentially operating more like a quota than a good faith placement goal,” said Craig E. Leen, a partner in the employment practice at the law firm K&L Gates. “Some employers are realizing that the goals are not attainable in a legal manner and are therefore resetting expectations.”
To some D.E.I. proponents, the speed of the reversal has underscored the shallowness of some of the initial commitments. “As you’re seeing companies pull back from these commitments, a lot of people are questioning how credible those commitments were in the first place,” Mr. Solorzano of Vinson & Elkins said.
Methodology
The New York Times analyzed a decade of 10-Ks for companies currently in the S&P 500, totaling 25,000 documents. The Times included companies that had submitted an annual report in 2025 as of March 8, which totaled 381 companies. Using custom code, The Times processed the filings with a combination of keyword searches and artificial intelligence tools to identify paragraphs related to diversity, equity and inclusion. Journalists manually reviewed the results to ensure the accuracy of the A.I. classifications.
President Trump has tapped Michelle W. Bowman, a Federal Reserve governor, to be the next vice chair for supervision at the central bank, according to a White House official who was not authorized to speak publicly.
The position was vacated at the end of last month by another Fed governor, Michael S. Barr, who stepped down from the role to avert a protracted legal fight in the event that the president followed through on threats to fire him.
Ms. Bowman, whom Mr. Trump appointed to the Fed’s seven-seat Board of Governors during his first term, was long seen as the top contender for the position. Because Mr. Barr stayed on as a governor — his term expires in 2032 — Mr. Trump’s selection for vice chair was limited to the policymakers currently on the board.
If confirmed by the Senate Banking Committee, Ms. Bowman is likely to usher in a more hands-off approach to financial regulation than that of her predecessor, who was appointed during the Biden administration.
In recent years, Ms. Bowman, a former state bank commissioner of Kansas, has positioned herself as a prominent voice at the central bank calling for less onerous oversight of Wall Street.
She voted against Mr. Barr’s proposal to raise capital requirements on lenders such as JPMorgan Chase and Goldman Sachs — a plan that the biggest banks and industry lobbyists ferociously opposed. She has also aligned with their calls to make the stress tests that the Fed imposes on lenders to evaluate their ability to withstand crises much more transparent. The central bank is working on meeting those demands after U.S. banking lobbying groups sued it.
Ms. Bowman, who worked in community banking and as an adviser in the Department of Homeland Security during the George W. Bush administration, has also become more vocal on monetary policy matters.
In September, she was the sole dissenter when the central bank decided on a larger-than-usual half-point interest rate cut; she feared that such a big move would look like a “premature declaration of victory” on inflation. It was the first time since 2005 that a governor had voted against a rate decision.
Since then, Ms. Bowman has stuck to her stance that the Fed should be cautious about additional interest rate cuts until it is more certain that inflation is heading back to its 2 percent goal. In remarks last month, she warned that there were “greater risks to price stability, especially while the labor market remains strong,” suggesting that she will not support a rate cut anytime soon.
Unless a governor steps down, Mr. Trump will not have the opportunity to shape the top ranks of the Fed until early next year, when Adriana D. Kugler’s term expires. In May next year, Jerome H. Powell’s term as chair will also end, but he can remain a governor into 2028.
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