Iowa City Press-Citizen: News -
[Cached Version]
Published on: 6/2/2002
Last Visited: 6/2/2002
The two-page report, called "How did we get in financial trouble and what is being done about it," was written by board treasurer Peter Fisher, who joined the board a few months ago.
"When there are resignations, it looks like things are in turmoil.I don't think that's the case," Fisher said Friday."Making this information available is doing nothing more than any public corporation would do for its stockholders.We are owned by our members.Members have a right to have clear and timely information available to them."
...
The board vacancies created when Patrick Hughes and Julia Mears resigned a few weeks ago will be filled by appointment, possibly in July, Fisher said.
...
Fisher was appointed to the board in March to fill the vacancy created with the resignation of recently elected board member Connie LaBarr.
...
Thrasher has been a co-op manager for about five years, most recently as the "front-end manager" at the co-op's Van Buren Street store, Fisher said.
...
Thrasher has budgeting experience, Fisher added, although most of the co-op's strategic budget decisions already are in place or in the works.
...
Fisher said distribution of his report in co-op stores is designed to clear up "misinformation" about the 32-year-old cooperative's financial situation.
It says the new Coralville store, which opened about a year ago at a cost of $3.2 million, was about $1.2 million over budget.The co-op wrapped up the fiscal year that ended June 30, 2001, with a net loss of $255,000 and a cash balance of $24,000.
As of April 30, in the current fiscal year, the Coralville store recorded a loss of $613,000, which was offset by a $205,000 profit at the Iowa City store, for an overall net loss of $408,000, the report said.
In addition to operating expenses, New Pi has about $2.55 million in debt, which carries a monthly payment of about $53,000, plus a monthly payment of $13,400 to lease the Coralville store.
...
"The bulk of the debt incurred for the new store is New Pi debt," Fisher wrote."Should we fail to pay that debt, our creditors would own everything we have in all our facilities."
To cut costs, New Pi has furloughed salaried employees, cut inventory by about $200,000, reduced staff to minimal levels, and eliminated four administrative or supervisory positions, Fisher wrote.
...
So far, the cuts have trimmed operating expenses by 5 percent, salaries by 13 percent and administrative expenses by 15 percent, Fisher said.
In addition, sales are up over last year at both stores.
"For the four weeks ending May 26, Van Buren sales were up 4.1 percent, Coralville up 1.9 percent over those four weeks in 2001," he wrote.
Fisher said a more detailed financial report will be distributed to members at the next membership meeting in June and in the co-op newsletter in July.
"I think the board needs to reassure people that the (budget) planning is going forward and that none of the resignations have slowed our recovery plan," Fisher said Friday."There is no reason for our creditors to be concerned.We are looking at over $200,000 in the bank, and we're paying our bills on time."
Let us know what you think of this story...
Archives
39 online sources [ view sources ]
Profile is not claimed [ claim profile ]
