Many customers assume the Arcade shops are gone, since it was announced earlier that the mall was closing.

Journal file photo

PROVIDENCE — So far, the demise of the Arcade shops has been slightly exaggerated — but the ax still hanging over their heads hasn’t exactly been good for business.

The shops were initially told they would have to be out by June 30, as the Westminster Street Arcade’s owners, Granoff Associates, moved forward with plans to renovate the nation’s oldest indoor mall to house a single tenant.

Some of the shop owners fought back and hired a lawyer, and their departure has now been delayed as eviction proceedings work their way through the courts.

But store owners say that many shoppers assume they’re gone, and the main hall of the Arcade is even emptier than before.

“No, we’re not having the same number of customers coming in, because I think people do think it’s closed down, because the initial reports were that we would only have 30 days,” said Don Beohner, owner of the jewelry shop Copacetic.

At first, the looming demise of the Arcade shops actually boosted business, but as the nostalgia-fueled shot in the arm wore off, the businesses began hurting badly.

“Initially, business actually improved because people were curious because they wanted to know what was going on — they were afraid that this was going to be their last cookie, or their last muffin, or their last coffee,” said Bette Hills, owner of the Providence Cookie Co.

Accompanying the loss of the initial publicity was the reality that several shops actually did close down.

Hills and Beohner plan to move together to nearby 17 Peck St., but difficulties with the electrical system have put that move on hold for now, which Hills said is making the lack of traffic even more troubling.

“We’re just hanging on. We’re trying to go from one place to the next without putting everything in storage — we’re just hanging on,” she said.

After a barbershop, Chinese restaurant and Italian eatery closed down at the start of last month, only a few businesses and organizations remain: Copacetic, the Cookie Co., The Black Heritage Society, La Greque, Café LaFrance and Shalmar Fashion Eyewear.

While they’ve been searching for small shop space downtown, some owners report that they have not been able to find affordable locations.

The remaining business owners are hopeful that they may be able to stay through the fall if they cannot find other space.

Sal LiBassi, owner of Shalmar, said he hasn’t been able to find a new spot, though customers come in regularly with suggestions.

“I have no idea where I’m going,” he said.

John Dineen, the lawyer for the shops, said the Arcade owners are still pursuing eviction.

“There are four eviction cases pending now in the 6th Division District Court,” Dineen said, listing the defendants as Copacetic, the Black Heritage Society, the Cookie Co., and Café LaFrance.

“On Monday of this week, I filed motions to dismiss with a memorandum in each of those cases, making legal arguments that the cases should be dismissed. There’s a hearing on those motions on Aug. 15. So presumably we’ll know more when Aug. 15 comes,” he said.

Lloyd Granoff did not return a call seeking comment for this story.

Meanwhile, some customers still walk through the Arcade’s lonely halls, but many are there out of curiosity about the building as much as the desire for a cookie or some falafel.

Suzanne Miller, of Toronto, visited Providence’s Arcade yesterday as part of a larger trip to Boston. She was delighted with the city’s architecture and charm, as well as that of the Arcade, but saddened when she heard that the Arcade has an uncertain future.

“It’s a gem, it’s a real gem. It’s beautiful,” Miller said.

“They have to bring more life into it, like they have with the rest of the city…. I certainly hope they save it,” she said.

The Arcade was built in 1828, and renovated in 1901 and 1980. Johnson & Wales University bought the building in 1995.

The businesses in the Arcade have operated on month-to-month leases since the Granoffs took full ownership of the property in February 2006. Since then, nearly 20 businesses have closed their doors and the Granoffs have not accepted new tenants, knowing that they would be renovating the structure.

The Granoffs have said that they have consistently lost money on the Arcade, as much as $10,000 a month.

dbarbari@projo.com