Durango Natural Foods Co-op is not closing its doors, at least not yet.
A previously scheduled vote to decide whether to dissolve the nonprofit grocery store was vacated Thursday after a member-owner loaned the co-op $75,000, said Kate Husted, president of the board.
“Literally, in the last couple days, the sentiment has flipped,” Husted said. “The general sentiment of the board is much more hopeful than a week ago.”
DNF got into trouble in March 2018 when expenses started outpacing revenue, a situation member-owners asked board members about, but board members were unable to fully explain. The co-op has been losing money each year since 2014, with the exception of 2017.
“I don’t know what it is we’re doing that we can’t get positive growth,” said Jamie Matthews, a DNF board member and its treasurer.
DNF is about $138,000 in debt to vendors, Matthews said. Additional liabilities include $231,500 in mortgage debt and a $70,000 line of credit, according to a letter sent to members. The property and building are worth about $650,000, Matthews said, and the co-op cannot let the debt exceed that amount.
Member-owners can participate in a no-confidence vote involving the board of directors. The vote is non-binding, meaning the results will express approval or disapproval in the board, but won’t necessarily result in any action. The vote is open for 10 days. Members can vote at the co-op, 575 East Eighth Ave. The co-op has about 1,400 active members.
In an effort to deal with the debt and revive DNF, board members have applied for grants, asked for donations and sought new leadership from National Cooperative Grocers. NCG has general managers who specialize in helping struggling cooperatives, and DNF may be able to get one of them in March.
DNF is a member-owned grocery store that welcomes all shoppers but offers special benefits, such as discounts and voting rights about operations, to members who buy a share in the co-op. The store offers access to local and organically grown meats and produce that might not be available at regular grocery stores and supermarkets.
The cooperative, established in 1974, began exploring options last year to boost sales, such as expanding its deli and seating area, focusing on more local products and offering pre-made meals. The first five months of 2018 had increasing sales, according to a letter sent to members informing them of the dire situation. However, the expected recovery from a slump that coincided with the 416 Fire has not materialized.
The cooperative has set up a GoFundMe page in an effort to raise $150,000 to pay its vendors. As of Thursday, the page had raised $3,934.
Anne DalVera, a member-owner, said she is encouraged by the possible changes that may come. The board expressed a willingness to accept responsibly for its mistakes, something DalVera said she appreciates.
Jimbo Buickerood, a member-owner, said he’s optimistic about the future of the co-op – there’s a strong “localist” movement in Durango, something the co-op can capitalize on.
“If you want to be local, you can’t be more local than to own local,” Buickerood said.
In coming weeks, board members will await results from the no-confidence vote and try to raise another $75,000 to pay debt due by the end of February.
bhauff@durangoherald.com