Plans for Yellow Springs’ longtime, downtown grocery store Tom’s Market to change its business model are pressing ahead. 

A press release from the Yellow Springs Community Foundation, Monday, Feb. 23, said that the foundation struck an agreement with Tom’s Market owner Jeff Gray with the goal of “transitioning the business into a form of community ownership in approximately two years.”

During this “transition period,” the statement reads, Tom’s Market will continue operating as usual.” 

The announcement means Tom’s Market is one step closer to becoming a co-op, a cooperatively-owned grocery store in which individuals could buy ownership shares, engage in decision-making, vote on operational matters, share in profits and receive discounts on products. 

The sale price and exact terms of the agreement are confidential as dictated by the agreement, Project Manager and village resident Kumar Jensen wrote to the News. 

“That being said, I can share that the purchase will include all assets owned by the business including such things as: inventory, equipment, vendor contracts, supplier agreements, licenses, business name, etc.,” Jensen said. 

Having signed a letter of intent, both Gray and the foundation have entered into a 90-day due diligence period. 

According to Jensen, that period allows the buyer — in this case, the Yellow Springs Community Foundation — the opportunity to “do as thorough business operations as possible and complete any critical business transition tasks before the sale is finalized.”

Specifically:

• Conducting an equipment inventory and evaluation to ensure that equipment including things like refrigerators and freezers are operating as described;

• Conducting an inventory audit of all goods that will be included in the sale of the business; and

• Identify which licenses, permits and certifications will transfer with the business, versus needing new registrations.

“For example,” Jensen wrote, addressing the latter point, “We do not want to see a lapse in the grocery being able to accept SNAP, so the due diligence period gives us time to work to get the new owners authorized to accept SNAP.”

Once this 90-day due diligence period is completed, Jensen said, and if both parties are satisfied, then the sale will be completed, at which point the ownership will change hands. Until then, ownership will remain in Gray’s hands. 

“During [the due diligence] period], Jeff Gray will remain actively involved in management while YSCF recruits and trains new leadership,” reads the foundation’s press release. “YSCF has enlisted the support of local and national experts, including participating in the Food Co-op Initiative’s Co-op Conversion learning cohort and support from Co-op Dayton, to assist with transition planning and community ownership exploration.”

It continues: “Throughout the due diligence period and into new ownership, the top priority is to ensure continuation of smooth operations at the grocery store, including investing in necessary business operations, and supporting the existing staff, which are and will remain one of the biggest assets of the business.”

The foundation said its project team for the transition of Tom’s business model is committed to keeping the Yellow Springs community informed throughout the transformation process, and intends to hold a town hall in April. 

Further coverage can be found in this week's print edition of the Yellow Springs News.