Huntsville Good Food Co-op’s future uncertain after members fail to reach quorum in recent meeting: ‘It’s already over’

Only about 40 members attended the meeting, falling short of the 50 verified members required for quorum. The meeting had been called to determine how the co-op would address its roughly $400,000 in outstanding debts and whether its remaining assets should be liquidated.

Without quorum, no vote could take place.

What is the current state of the Good Food Co-op?

For some members, the lack of attendance was a frustrating development after months of financial and governance problems.

“It’s already over — we’re too late to save the co-op, this is not a new problem,” said Ally Bryant, who told members the organization’s financial difficulties date back years.

The co-op is no longer operating out of its Crescent Road storefront. Landlord Mike Harrower told the members during the meeting the co-op will not continue operating in the space, although he has not yet formally taken further action against the organization.

“Frankly, it’s too late,” Harrower said. “Whether the co-op survives is completely up to the members to reorganize and open somewhere else.”

He said he and other creditors would not be able to wait indefinitely for the co-op to resolve its financial situation.

“The last meeting disintegrated, this meeting does not have quorum, so the landlord and the other creditors are not going to wait forever,” Harrower said.

How are local suppliers affected?

For local suppliers, the financial uncertainty has already had consequences.

Allison Young of The Oven in Bracebridge told members that the amount of money the co-op owes to her business could significantly affect her ability to pay staff in the months ahead.

“What is owed to us by the co-op can make us or break us this winter,” Young said.

Young emphasized the need for accountability, asking if “members are consciously OK with having local people owed money who try really hard to keep a community going.”

Looking at the history of the co-op’s debt

The co-op’s financial problems have also raised questions about its history and governance. Carrie Lynn, who volunteered with the co-op and managed its grocery market from 2017 to 2020, said the current financial crisis came as a surprise to many members because of what she described as a lack of transparency.

Lynn said the organization was already facing an $80,000 deficit in 2019, and that members and volunteers had previously raised concerns about its finances.

“Many of us tried to speak out about the seriousness of the issues that were occurring within the operations of the co-op, a petition of 86 signatures and dozens of comments were put together by members, volunteers, calling for truth and transparency,” Lynn said.

“Speaking out came at a high cost,” Lynn added, referring to a cease-and-desist letter she said she received after advocating for greater transparency.

What is the path forward for the Good Food Co-op?

The co-op now faces a complicated path forward. Ontario’s Co-operative Corporations Act requires a co-operative without a quorum of directors to call a general meeting to fill board vacancies. The act also prevents a board from conducting business without a quorum.

That means the failed Aug. 31 meeting did not itself dissolve the co-op or trigger an automatic transfer of its assets. Instead, another meeting or other legal process will be needed to determine how the organization proceeds.

The co-op has also received significant government funding over the years, including a $535,500 FedNor contribution announced in 2024 for its expansion and new equipment. What obligations would apply to those assets if the co-op ultimately dissolves remains a question for the organization and its funding partners.

Brent Henderson, a former chair of the board, said the co-op’s future also depends on its members becoming more engaged.

“There are many people here who we didn’t see for three months, six months, nine months, a year,” Henderson said. “Not showing up and not spending your money means things close. That’s the reality of the world.”

For now, members are expected to meet again in the coming weeks, but the co-op’s landlord and creditors are waiting for a resolution.

“The landlord at any time can change the lock on us, since we owe him rent,” member Inna Evtoushenko said. “Then everything here, he can sell, settle what we owe him, and then give the rest to whoever.”

The co-op’s next meeting could therefore be one of its last opportunities for members to determine how the organization’s affairs are handled, if enough members show up to make a decision.

Going forward, the possible paths for the Good Food Co-op are:

• Reorganizing Members reach quorum at the next meeting and elect/reconstitute a functioning board that develops a plan to continue the co-op, likely at a new location.
• Liquidating voluntarily Members approve dissolution, after which the co-op goes through a formal liquidation process to sell assets and pay creditors according to the applicable rules.
• Creditor/landlord action If the co-op cannot resolve its debts, creditors, including the landlord, could pursue their legal remedies. What happens to specific assets would depend on the lease, security interests and other agreements.
• Government/funding consequences Government funders such as FedNor could enforce whatever rights or repayment obligations are contained in their funding agreements. That does not necessarily mean the government automatically takes the assets.
• Remain in limbo temporarily Until members or another lawful process resolves the governance issue, the co-op can remain an incorporated entity without operating normally — but it still has outstanding obligations and creditors waiting.