Co-operative Futures helps raise the finance to save a community hardware store.
Local hardware store York Supplies, in the Birmingham suburb of Kings Heath, is a much loved institution and community focal point. So much so, that when owner Jon decided to retire, his customers didn’t want the store to be sold off to a developer. They rallied round and formed a community benefit society (CBS) so they could buy it, run it and continue its valued presence at the heart of their community.
To help form a CBS and raise the capital to buy the store, the group sought help from the Business Support for Co-ops programme, and received expert advice from Co-operative Futures’ Jo White who helped them navigate setting up the organisation and launching a community share offer.
“Jo provided invaluable help along the way, without which we would still be struggling to get our heads round the business plan! She provided knowledge we didn’t have, insight to guide us on how to balance the books, and wording we needed. It is no exaggeration to say we couldn’t have done it without her.”
“Jo steered us to create an effective business plan when we applied to the Community Ownership Fund (COF). She was invaluable and guided us in filling in their monumental 17,500-word application form.” Naomi Standen, Chair, York Supplies Community Co-op
The COF is a grant programme to help communities acquire valued assets deemed at risk. The group’s application was successful. They were awarded £250,000 match funding towards the purchase of the store, as well as a £50,000 revenue grant.
When it came to launching the community share offer, Jo’s expertise was once again invaluable. “The business plan had to be more detailed for this, so Jo helped us revise it so we could create an effective offer. She also helped us with a first look at our share offer document and other documents we had to produce.” The share offer raised nearly £350,000 from more than 700 investor members.
The store has now re-opened under new community ownership. “We want to retain the ethos and all the things the shop does.” said Naomi, “We’re the first urban traditional hardware store in England to go through a process like this. It’s because the locals recognise the things the shop does. We aim to add and improve, not remove or replace things that people value.”
If your group or business are looking to buy a building, or need to raise finance through community shares, grants, or loans talk to us. We can explain the various options and processes and find the best fit for your organisation.