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.
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.