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Community Buyouts
A community buyout occurs when members of the public form a
community enterprise
to
purchase an existing
business that is about to cease operation or revive a closed business.
Small businesses play a vital role in keeping rural communities alive by
providing essential services such as a post office, petrol station,
hotel, hardware supplies or general store.
The closure of a rural business often hits smaller communities much harder than
larger towns, where other businesses can fill the gap of lost services or jobs.
The following are examples of community buyouts that have occurred in rural
Australia.
Fuel retailers
General stores
Hotels
Related links
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Kaniva Community Co-operative Ltd,
Victoria
In 2004, a major oil company decided to decommision the only retail
fuel outlet in the rural community of
Kaniva, 400 km west of Melbourne, after failing to find a buyer for the
business.
With the nearest town being over 40 km to
the east, Kaniva residents faced the prospect of a 80km return trip to purchase
fuel.
Local residents and businesses formed a co-operative on the fear that losing
the town's only fuel outlet
will increase the
population drift from Kaniva to other larger rural
centres, threatening businesses and jobs that are needed to sustain the
viability of the community.
Case study
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The Community Co-operative Store (Nuriootpa) Ltd,
South Australia
www.bcs.coop
The community of Nuriootpa in the Barossa Valley
formed the Barossa Community Co-operative Store (Nuriootpa) Ltd in 1944 to
purchase the
local
department store after the retirement of the business owner. Over the
ensuring years, the co-operative has expanded its operations to include a
Supermarket, Hardware, Homemakers Carpet Court and Betta Electrical Franchise.
Today, co-operative has an annual turnover in excess of $50 million and employs
over 250 staff.
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Pyrenees Store Co-operative Ltd,
Victoria
In 2000, the general store at Lexton was closed, leaving the small rural
community 160km north west of Melbourne without a Post Office. After failing
to find a buyer for the business, the community formed the Pyrenees Store
Co-operative Ltd and successfully tendered for the Post Office licence. In
2004, the co-operative became a Rural Transaction Centre, providing a range
of government and business services.
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The Watchem Community Co-operative Ltd,
Victoria
The small rural community of Watchem 230km
north west of Melbourne formed a co-operative
to save the town's general store after it was destroyed by fire in 1990. After
the owners
decided not to rebuild the store, the community formed The Watchem
Community Co-operative Ltd in 1991 to purchase the property and rebuild the
store. The
co-operative
now leases the store to an independent business operator.
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Walbundrie Co-operative Limited,
NSW
In 1974, the owner of the Walbundrie General Store decided to close the
business. A public meeting elected a steering committee to investigate
establishing a co-operative to run the business. After community consultations,
the store reopened as a branch of the Albury Rural Co-operative Ltd. In 1976,
the co-operative informed the community that it was closing the store in
February 1977.
The community of
Walbundrie, 50
kms north of Albury, then
formed the Walbundrie Co-operative Ltd to reopen and run the store. Today, the
co-operative provides a range of services services to the local
community including Post Office facilities, groceries, a take-away food outlet,
rural merchandise, newsagency, fuel and oil
products, an agency for insurance, and banking facilities.
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Devenish Community Hotel Co-operative Ltd,
Victoria
Devenish is a small rural community located 240km north
east of Melbourne. Like many rural towns across Australia, population decline
has seen most businesses in Devenish close, leaving the hotel
and general store as the last in town. When faced with the closure
of the hotel after the owners could not sell the business, the community formed
the Devenish Community
Hotel Co-operative Ltd in 2000 to purchase and run the hotel.
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Hopetoun Community Hotel Co-operative Society Ltd,
Victoria
The co-operative was formed in 1957 to build and operate a new hotel on the
site of a
condemned hotel in the rural town of Hopetoun, 420km north west of
Melbourne. The Ballarat Brewing Company decided to close the 62 year old
Commercial Hotel as it did not meet new standards applying to Victorian hotels.
The Hopetoun Progress Association, concerned the closure of the hotel would
leave the town with only one hotel, met with the company to discuss the future
of the hotel. The company agreed to make a gift of the land and hotel licence if
the community built a new hotel.
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Yinnar Community Hotel Co-operative Ltd,
Victoria
The rural community of Yinnar 150km east of Melbourne
formed the Yinnar Community Hotel Co-operative Ltd in 1972 to purchase the
local hotel
after its aging owner could not sell the business. After employing a manager
for a number of years, the co-operative now leases the hotel premises to a
licencee.
Each year the co-operative distributes a dividend to members, hands out grants
to community organisations and
sponsors the local Australian Rules football team.
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