April 19, 2023
PORTLAND, OR - Food Front, a beloved grocery co-op in Northwest Portland, has issued a warning that dire financial circumstances may force the store to close its doors. The community-based co-op has been struggling with mounting financial difficulties, and without a significant turnaround, the store may be unable to continue operating.
According to the Food Front March Board Meeting financial presentation, the co-op currently has $444,000 in debt, but it has successfully reduced this figure from over a million dollars. The co-op has also managed to slow down the decline of its reserves, averaging a loss of $12,000 per week compared to the previous rate of $24,000 per week. However, despite these improvements, Food Front still has only $112,000 in reserves in its bank account and must find ways to stem the ongoing losses.
Established in 1972, Food Front has long been a staple for many Northwest Portland residents, offering a wide variety of local and organic products, as well as supporting small farmers and producers. The co-op operates under a unique business model, which allows members to own a share of the store and participate in its governance. This structure has fostered a strong sense of community among its patrons.
However, Food Front has been facing increased competition in recent years, with the growth of larger grocery chains and the rise of online shopping. These factors, coupled with the ongoing economic challenges posed by the COVID-19 pandemic, have contributed to the co-op's current financial struggles.
The co-op's management team is exploring a range of options to address the financial challenges, including seeking partnerships, loans, and community support. Members and patrons are being urged to rally behind the co-op and increase their patronage in order to help keep the store afloat. The goal is to reach a cash-neutral position or ultimately sustain itself into the future.
The potential closure of Food Front would not only impact the local community but also the small farmers and producers who rely on the co-op as a retail outlet. The co-op's closure would also mark the loss of a long-standing, community-driven grocery store that has been a fixture of Northwest Portland for decades.
As Food Front grapples with its financial difficulties, the fate of the co-op hangs in the balance, with the support of its members and the wider community playing a crucial role in determining its future.