From your Board and General Manager:
East Aurora Co-op’s first year in business has been successful in many ways, yet financially challenging due to debt. The road to opening day was bumpy. Unknown structural defects with our building’s trusses caused unanticipated construction debt and eight months of costly delays.
The board had to advance capital funds and overrun budgets to cover the costs of the truss repairs and we are still in negotiation to be reimbursed for some these expenses. Because of this and despite our sales growth, our co-op’s cash position today is tenuous and threatens store operations.
For East Aurora Co-op Market member-owners who are bona fide New York State residents.
Where the debt came from
Delays: Longer construction period = increased costs
Expenses: Higher personnel, architectural/engineering costs and professional fees
An 8 month delay in opening meant 8 months of lost revenue.
Sales have been 24.7% higher than projected – fantastic news for the long term outlook for our store! However, with higher sales come higher costs.
The plan to fix it
1. Consolidate debt
2. Adjust payment terms
3. Raise additional capital
Already, the Board of Directors is
• Renegotiating terms on loans and construction debt.
• Working toward a line of credit and loans from partner co-ops.
• Earned membership in National Co-op Grocers (favorable costs, payment terms and support)
• Owner drive: Recruitment this year has welcomed 75 new co-op owners and growing!
Now, the East Aurora Cooperative Market has launched a capital campaign to raise $250,000 in investment by member-owners who are bona fide residents of New York State by November 30, 2017. Owners who are NYS residents, please consider a financial investment in the form of Preferred Shares or as a loan to
East Aurora Co-op Market
EACM exists to create a vibrant, healthy community in the Southtowns by providing access to fresh, local and wholesome foods to everyone.
Open to Everyone 7 a.m. – 9 p.m. DAILY
591 Main Street East Aurora NY 14052
PH: 716 655 COOP (2667)
Email: [email protected]