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Berkshire Food Co-op facing financial trouble

Members of the Co-op’s Board Of Directors and its general manager avoided directly answering questions concerning the Co-op’s finances, including whether it is in danger of closing.

Great Barrington — In a post on its public Facebook page, the Berkshire Food Co-op indicated that it is facing financial challenges.

However, despite multiple inquiries from The Berkshire Edge to members of the Co-op’s Board Of Directors and its general manager, the exact details of its financial troubles remain unknown.

Since June 2019, the Co-op has operated at 34 Bridge Street out of the Powerhouse Square development.

The business’ annual report for fiscal 2025 lists:

Prior to one-time accounting adjustments, we had a net income of $417,000 on sales of $11.3 million for the fiscal year ending June 30, 2025. This is a significant improvement from the prior year where we had a net loss of $282,000. As an ongoing effort to clean up our accounting practices and financial statements we made a one-time accounting adjustment to true up our inventory valuation which resulted in a net of loss of $388,000 for the year.

An income statement from the Berkshire Food Co-op’s fiscal 2025 annual report.

According to its annual report, both local sales and total sales have gone down in the past three fiscal years, including in fiscal 2025 with the Co-op making $11,345,700 in total sales, down by $1,309,623 from the previous fiscal year.

A Breakdown of total sales and local sales in the Co-op’s annual report for fiscal 2025.

In a Facebook post on Wednesday, February 18, the Co-op announced:

Important update to our community: On Monday, February 16, Berkshire Food Co-op made several operational changes, including reducing employee hours and a careful evaluation of discounts and promotions with the aim of reducing overall expenses, as the Co-op’s current financial performance is not sustainable.

Co-op leadership and the board are working with an independent outside team to fully assess our financial position and determine the best path forward.

As a co-op for and by the people, our top priority is supporting our employees and the people of this community that bring our mission to life.

We remain deeply committed to our community (as we have been for more than 45 years) and we hope you will continue to support us by shopping at the Berkshire Food Co-Op.

The post does not list how many employees would receive reduced hours, what discounts and promotions would be cut back, or the name of the independent team with which the Co-op is consulting.

In regards to the social media post, The Berkshire Edge reached out via email to members of the Co-op board and management, including Board of Directors President Phyllis Webb, Vice President Kitty Kiefer, and General Manager Jessica Bosworth.

Webb and Kiefer responded with the following cowritten email:

Unfortunately, the Co-op has not been performing up to expectations, sales are down, inflation and overall operating costs are up. We have been challenged by unusually high rent as well as local competition to name some of the top reasons for where we find ourselves today.

We have received an outpouring from Co-opers who can’t imagine Great Barrington, the Berkshires and beyond without the Berkshire Food Co-op. We are working on their behalf and will need their expanded support as we work hard toward our next 45 years in business.

Our focus now is to support our employees and to continue serving shoppers and our community.

The whole community needs our Co-op and we need more shoppers!

There are many moving parts as we move toward recovery making it a work in progress.

The Berkshire Edge responded with a series of questions about the business’ financial situation, with Bosworth writing back in response.

When asked for clarification on how “the Co-op has not been performing up to expectations” despite the 2025 annual report listing “a significant improvement from the prior year where we had a net loss of $282,000,” Bosworth responded:

While the year-over-year improvement noted in the annual report reflects important progress, performance is measured not only by net results but also by long-term sustainability. Like many small businesses, we are navigating elevated costs across multiple categories, alongside shifting consumer spending patterns. Sales trends have softened compared to the unusually strong pandemic-era years. We continue to assess how best to align operations with current market realities while protecting the Co-op’s long-term health.

Bosworth did not provide specific details in response to an inquiry into how much the Co-op’s rent has increased and when that increase took place. “The Co-op’s lease includes scheduled annual adjustments tied to standard factors such as property taxes and building operating expenses,” she responded. “These adjustments have occurred in accordance with the lease terms over time.”

When asked about the specific reasons for higher operating costs and lower sales, and which costs have increased the most, Bosworth responded:

Broadly speaking, the increases reflect industry-wide cost pressures in areas such as goods, services, utilities, and insurance. At the same time, consumer purchasing patterns have shifted, impacting overall sales volume. We are continuously reviewing expenses and operational efficiencies to respond appropriately while maintaining our mission and service standards.

The Berkshire Edge asked asked how many part- and full-time workers the Co-op currently employs, how many hours had been cut for employees, and whether the Co-op would be eliminating positions. “The Co-op currently employs 55 team members,” Bosworth responded. “We are committed to treating employment matters with care and respect for individual privacy, so we are not sharing specific details regarding staffing adjustments. Our priority remains supporting our team while ensuring responsible stewardship of the organization.”

Bosworth would not directly answer whether the Co-op is currently at risk of having to shut its doors. “Our focus is on thoughtful planning and proactive measures to strengthen the Co-op’s long-term sustainability,” she replied. “We encourage community members to stay connected through our website, social channels, and in-store communications for updates as plans develop.”

The Berkshire Edge pressed via email for further details from Bosworth, Webb, and Kiefer but has received no response as of press time.

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