Tim Robertson, Times-Union Staff Writer

The economic downturn may have begun to claim victims in Kosciusko County with several local businesses closing their doors as the new year began.

On Dec. 17, the Times-Union reported Warsaw Nissan was closing. After Christmas, several more local business places including Karma Records, Simply Scrapbooking and Sam Goody, all of Warsaw, called it quits.

Owners and managers of the businesses said the ailing economy was a major factor in the decision to close.

Michele McCoy, owner of Simply Scrapbooking, said her customers stopped buying amidst economic worries at the end of the year. "Sales have just dropped," McCoy said. "The economy has a lot to do with it."

Karma Records' Warsaw store owner Tony Silveus said his store was struggling to compete with bigger chain stores. "Basically, we can't beat the Wal-Mart's of the world," Silveus said. "It's the Wal-Mart syndrome. The big box stores mean you're going to see more and more closures."

Silveus said competition with larger retailers means smaller stores like his have a hard time surviving hard economic times. "When the economy took a dive just before the holiday season, that was the final factor," he said.

Silveus' store employed four.

Sam Goody has not closed for business yet. According to general manager Dustin Schmaben the music, movie and entertainment store will stay open until Jan 24, with all merchandise marked down 50 percent. Schmaben said the Sam Goody's corporate office made the decision to close the Warsaw franchise. The store employs six.

Several other area businesses vacated their places of business earlier this week, but attempts to contact their owners to confirm their closure were not successful.