AFTER a much-anticipated opening at the iconic Chrysler Building in New York City in January, home-grown sushi chain Sakae Sushi has shuttered its first United States outlet.

The 70-seat conveyor belt sushi restaurant closed last week due to the ailing US economy and poor business.

However, Sakae Sushi's second restaurant in the city's Greenwich Village, which opened in June, remains open.

The chain is run by Apex-Pal International, which invested an initial US$1 million for its expansion into the US by setting up a fully owned subsidiary, Apex-Pal USA, in 2006.

Of this amount, an estimated six-figure sum was spent on renovating and equipping the outlet in Chrysler Building, which houses offices and retail shops.

The company has more than 60 Sakae Sushi outlets in Malaysia, Indonesia, Thailand, the Philippines, China and Hong Kong.

Mr Douglas Foo, chairman and chief executive officer of Apex-Pal International, told Life!: 'The outlet in Chrysler Building was under-performing in the past few months due to the US financial meltdown, so the management decided to close it and focus on the Greenwich Village outlet, which is doing better.'

While the 77-storey Chrysler Building is an architectural landmark, its location in a business neighbourhood meant that sales slowed significantly with the US financial crunch.

Mr Foo said: 'The outlet in the Village remains strategic as it is near the New York University campus and many watering holes, so we get a steady stream of customers.'

He added that while business at the 70-seat Village outlet was 'brisk in the first two months of opening', it has also been affected by the weakening economy.

Read the full story in Thursday's edition of The Straits Times' Life!