HOPE FOR OUR CO-OP

An undis­closed buyer has tabled an of­fer for Katan­ning’s BKW Co-Op, which may pre­vent the his­toric busi­ness from clos­ing its doors.

Great Southern Herald - - Front Page - Saskia Adysti

Katan­ning BKW Co-op has re­ceived a non-bind­ing of­fer from an undis­closed buyer ac­cord­ing to the co-op ad­min­is­tra­tor.

The 97-year-old co-op­er­a­tive shop went into ad­min­is­tra­tion ear­lier this month due to strug­gling fi­nances. The news shocked the com­mu­nity, which has since ral­lied to save the op­er­a­tion.

How­ever, on Au­gust 21, Co-op ad­min­is­tra­tor Neil Cribb sent a let­ter to all mem­bers to in­form them he had se­lected a pre­ferred buyer for the busi­ness.

He has since en­tered into ne­go­ti­a­tions with the buyer.

“The se­lected pre­ferred buyer has sub­mit­ted an in­dica­tive non­bind­ing of­fer to pur­chase all of the busi­ness of the Co-op and all of the land and build­ings owned by the Co-op,” he said in the let­ter.

“I will now be­gin ne­go­ti­a­tions … as that process may take some time, a con­tract of sale may not be com­pleted be­fore the sec­ond meet­ing of cred­i­tors, which must be held on or be­fore Septem­ber 4.”

Mr Cribb said the Co-op cred­i­tors would de­ter­mine the fu­ture of the busi­ness dur­ing the sec­ond meet­ing.

“I be­lieve a sale of all of the busi­ness of the Co-op to a sin­gle buyer of­fers the best op­por­tu­nity and best out­come for all stake­hold­ers and re­sult in the con­tin­ued ser­vices of the Co-op for the ben­e­fit of the com­mu­nity,” he said.

BKW Co-op will re­main open and trad­ing dur­ing this ne­go­ti­a­tion process.

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