The board, at its Dec. 16 meeting, voted unanimously to recommend closing The Merc. The store has “sustained significant yearly losses for over five years,” according to the resolution that will be put up for a vote at the meeting.
Because of …
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The Powell Mercantile Board of Directors is recommending the community-owned business close its doors.
A meeting to determine the fate of The Merc, which opened in 2003, will be held at 7 p.m. Thursday at the downtown store at 235 N. Bent St.
The board, at its Dec. 16 meeting, voted unanimously to recommend closing The Merc. The store has “sustained significant yearly losses for over five years,” according to the resolution that will be put up for a vote at the meeting.
Because of that, the “cash balance will not sustain continuing operation,” the resolution states, even though the board has “made every effort to correct and improve operations.”
The Merc is owned by more than 800 shareholders who, starting in 2001, invested $500 per share to open the business. Board member Diane DeLozier told the Tribune in December that those shares still have value but likely are not worth $500.
Each share is worth one vote. DeLozier said in the past, the majority of shareholders have not attended meetings but have designated the board or an individual board member to vote on their behalf.
In a letter, the board asked investors to attend the meeting or to designate a proxy. At least one-third of votes must be cast for the decision to be binding.
DeLozier said an evolution in shopping behavior has reduced traffic and sales and left the board with little alternative but to consider closing the store.
Manager Ronnie Sommerville, however, said she feels that, with changes, The Merc could survive. Sommerville said the store should focus on women’s clothing, since those are the top-selling items.
— Tom Lawrence