Murphy outlines efforts underway to save CGI
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In correspondence with the Record-News, Molly Murphy provided more detail on efforts underway to maintain CGI as a viable community business.
Here is her explanation in its entirety:
The current group is comprised of families with young children who united because they want to ensure the next generation has a community in which to grow in, learn from and thank when they thrive. This taskforce is not affiliated with any one organization, though it is eager to engage/continue to engage with existing organizations and individuals who are passionate about our town uniting to survive.
High-Level Goals:
EDUCATION – It is crucial that we educate community members on the economic impact that results in utilizing local products and services.
SUSTAINABILITY – The taskforce was formed to ensure our town – including the uptown area – does not continue to deteriorate. The group targeted the most immediate need: sustained and enhance the only community-owned business of its kind in the area to give the existing shareholders the offerings and buy-in they deserve.
PROGRESS – The group’s project-specific goals include creating and maintaining jobs, providing retail offerings and services not otherwise available in the area and ensuring competitive pricing on key goods for residents and potential visitors, which will in turn bring revenue to the area.
PROBLEM SOLVING – No business plan can sustain its model for 20+ years and expect to stay competitive in an evolving landscape and with ever-changing consumer wants. This taskforce is here to solve this issue for the benefit of our community, starting with CGI.
NOTE: Our goal is not – and will never be – for another Mount Ayr business to shut down as a result of CGI restructuring. We are strong believers in fostering local competition and buying local as part of our community’s infrastructure.
Commitment:
Since first learning of the potential closure in the December 5 issue of the Record-News, the taskforce dedicated more than 100 combined man hours in under 10 days to address the evolving key audiences, synthesize feedback from current and potential shareholders and/or customers, research offerings from locations similar to Mount Ayr and pursue leads to make an evolved CGI a reality.
The taskforce is committed to presenting a viable business plan by late January/early February.
The taskforce spoke with most all the existing board members. As part of the business plan, members of the taskforce are interested in assuming the role of the board (with shareholder approval). These proposed board members will have expertise that aligns with the proposed business model. The board will also increase the level of transparency for all stakeholders. Formal roles and responsibilities, expectations, terms, and proactive shareholder communications will be addressed.
Funding and Support
Nearly $25,000 has been unofficially pledged PRIOR to the business plan even being socialized. Most commented on their desire to see our town survive, grocery costs stay affordable and/or the need to keep the business district alive. Formal investing information will be available as part of the plan presentation to existing and potential shareholders in early 2020.
Several existing shareholders have come forth to donate their share back to CGI if a plan is in place and approved to resell shares to raise the needed capital for the new business structure.
With existing financial agreements with groups like Associated Wholesale Grocers (AWG), our understanding is that the actual dissolution of the Community Grocers Inc (the company vs the physical store) could not happen until on or around 2024 – approximately four years from now. Regardless, CGI’s legal counsel informed shareholders that the dissolution can be reversed at any time if shareholders were to meet again and 51 percent agreed.
A number of long-time shareholders publicly stated their support behind this task force during Saturday’s meeting.
Group Demographics:
All are in their mid-40s or younger, with most being in their 30s. They are the individuals who benefited from the original founders of CGI but were not part of the store initiation.
The inaugural group members have professional training and expertise in areas relevant to the economic needs in Ringgold County, including business, human resources, education, finance, healthcare, marketing, sales, nutrition, engineering, and agriculture.
