Prairie Food Co-op Wind-Down

No. Under the campaign’s terms, money would be released to the co-op only after at least $100,000 was committed and the Board decided the total was enough to move forward. The campaign reached about $100,000 in pledges, but the Board decided not to release the funds. Not one dollar of campaign money has been deposited into the co-op’s accounts or spent.

Your check was never deposited or cashed. It has been held securely and separately from the co-op’s funds. You can choose what happens to it:

• Returned to you by mail, or
• Shredded, if you would rather not wait for it to come back.

Please tell us your choice by emailing [email protected] or calling (224) 585-3358 by November 25, 2026. Include your name and the amount of your check. We will also reach out to you individually. If we do not hear from you by then, we will securely shred your check.

No. Your pledge is released. There is nothing to pay and no further action is needed on your part.

No. Under the offering terms, an investment became final only once the Board accepted the subscription and released the funds from escrow. That never happened, so no new shares or notes were issued in this campaign. You are not a creditor or investor in this campaign, and none of the losses described below affect you as a CIP 4 pledger.

The Board’s letter to Owners explains this decision in its section “Fundraising would not provide enough time for a turnaround.”

We are grateful for the offer, but the co-op is not accepting new donations, investments or loans. The campaign has closed.

The Board’s letter to Owners explains the reasons for this decision.

Yes. The Board considered grants, but three things limited what they could do for the co-op:

• Eligibility. Prairie Food Co-op is a for-profit cooperative, not a nonprofit. Many grant programs, especially those from foundations, are open only to nonprofit organizations, so most were not available to us.
• Matching funds. Many of the grants a co-op can apply for require a match, meaning the co-op must put in its own money, often equal to the grant amount. The co-op did not have cash available to match.
• Timing. Grants take a long time. Most programs accept applications only during set windows, often once a year. Review and award decisions usually take several months after the deadline, and many grants pay out only as a reimbursement after the money has been spent. From start to finish it can take six months to a year or more before grant money arrives. Grants are also usually tied to specific projects or equipment, not to covering day-to-day operating losses. The co-op did not have the cash to keep operating while waiting that long.

Yes. The co-op’s bylaws give the Board responsibility for managing the business and affairs of the co-op (Section 4.1), and nothing in the bylaws requires an Owner vote, or the agreement of individual Owners, to wind down store operations. If any later step legally requires an Owner vote, you will receive written notice of the meeting and the proposal, as the bylaws require.

The Board is not aware of a viable option at this time. Please reach out to us at [email protected] if you have further questions.

The Board is working with legal and financial advisors on the most orderly and responsible way to wind down store operations, pay what the co-op owes as far as its resources allow, and complete the required legal steps. We will tell Owners about each step as it is decided.

The last full day of business is Sunday, November 15, 2026. The store will keep its regular hours until then. After Sunday, the store may be open for reduced hours until the remaining inventory is sold.

Yes. Please use any gift card or store credit by Sunday, November 15, the last full day of business.

Yes:

• Thursday, November 12 and Friday, November 13: 30% off for Owners only, on every shopping trip.
• Saturday, November 14 and Sunday, November 15: liquidation sale, open to all shoppers.

Based on current estimates, there will most likely not be money left to return Owner shares. Owner shares are paid last when a co-op winds down, and the bylaws do not allow shares to be redeemed when doing so would leave the co-op unable to pay its other obligations (Section 7.2).

Preferred shares are paid before Owner shares but after all of the co-op’s loans and other debts. Based on current estimates, there will most likely not be enough money to repay preferred shares. No dividends will be paid.

Current and past Board members also own preferred shares. They receive no special treatment.

Member loans are unsecured and rank behind the co-op’s bank loans and other creditors. Based on current estimates, there will most likely not be enough money to repay member loans, and no further interest or principal payments will be made while the wind-down is under way.

Current and past Board members have also made loans to the co-op. Their loans receive no special treatment.

A loss on Owner shares, preferred shares or a member loan may be deductible. The co-op cannot give tax advice, so please talk with your own tax advisor.

No. Patronage dividends can only be paid from profits, and the co-op has not had a profit to distribute.

Our employees have kept the store running through a very difficult period, and the Board is committed to paying all wages owed to them, as the law requires. Details for staff will be communicated directly to our employees.

The co-op will pay its creditors in the order the law requires, and as far as its resources allow. The Board is working to handle this as fairly and openly as possible.

We will send updates by email to the address the co-op has on file, and post them on this page and in the store. Please make sure your contact information is current.

Email [email protected]. We will add common questions to this page as they come in.