Dear Community,
From 3 people with a vision and a caravan to a flourishing intentional community of some 500 people, the Findhorn Foundation Community has over the last 35 years been an inspirational model for utopian dreamers throughout the world. Over the last few years the emerging Eco-Village project has brought the vision of sustainable living to the forefront of our collective agenda. However, a key component of sustainable community is a sustainable economy and it is clear that the Findhorn Foundation itself is no longer able to generate the income necessary to fund the growing village infrastructure.

One of the key businesses in the community is Phoenix Community Stores Limited (PCS). The Phoenix is one of the UK’s leading independent retailers of holistic products and currently employs 15 people with a turnover of £ 1 million. Our main activities are retailing, mail order, and an organic bakery. We also helped fund Wester Lawrenceton, a focal organic farming project and are active advocates of regional trade, local currency initiatives and community living.

Encouraged by the growing interest in our core product ranges – organic foods, fair trade, holistic health an personal development, we believe now is the time to significantly expand the range and quality of our products and services.

We therefore propose to purchase the existing majority shareholding in the Phoenix that is currently held by New Findhorn Directions on behalf of the Findhorn Foundation. We intend to fund the purchase with an innovative mix of investors that would include community members, customers, ethical investors, local residents and supporters of the Findhorn Foundation Community. We are also seeking active participation from ethical banks and funding institutions. The new Phoenix would then emerge from the buy-out as a development company seeking to co-create a sustainable community economy for the benefit of the collective community, team workers, individual stakeholders and, of course, the business itself.

Whilst initially the majority of the activities would be based at The Park we do have plans to develop a waterfront property in nearby Findhorn village into Scotland’s first organic restaurant. We hope that in the future the development of the company would allow us the opportunity to co-create Fairtrade and inter-community trading projects around the globe. We would also intend to actively co-operate with other initiatives in providing Ecoversity training programmes and activities.

Proposals for the first phase of The Park based development include a renovated main Phoenix bookstore, a purpose built food market, all day café, and the joint development of’ a community office that would incorporate an eco-visitor centre and creche. A second phase would look at the provision of health and fitness facilities, hotel/B&B accommodation and eco-housing developments. In addition we expect a number of related opportunities to unfold as the projects develop.

We intend that the project will both enhance the commercial, social and recreational facilities on The Park and serve to further the integration of the community into the cultural and economic life of the region. On a physical level it is our intention that any new buildings be ecologically sound, beautiful to behold and function effectively.

This is a bold project but that is what is required if meaningful progress is to be made in creating a sustainable community economy that can practically serve our economic requirements, provide sufficient right livelihood employment opportunities and be an inspiration for other intentional community projects.

We are very grateful for all of your support so far and intend that our development will only enhance the products and services that we offer to you. Should you wish to be involved in any way we ask you to return the enclosed form(s). In order to reduce costs and speed up the administration we will be encouraging electronic communication in the future so an evolving web site (www.phoenix-stores.co.uk) is an integral part of our future. I’m looking forward to your creative input, ideas and feedback, job applications and hopefully support.

Yours in service, David Hoyle for the Phoenix Team

https://celebratingoneincrediblefamily.org/wp-content/uploads/2024/09/Phoenix-Rising-Survey2.pdf

Summary

The majority of you like and care for the Phoenix. You do not always enjoy the cramped space, till area or the scale system. You are satisfied with books, wish we offered more local crafts and are impressed by the
selection in the food department. Our apothecary team look after you and, in general, when you think about it, and what the other options are, you are quite grateful that we exist. You definitely love the name and it will continue.

In general you favour the building of a new food store, waterfront restaurant, renovated Phoenix and developing the bakery. We found the comparatively low mark for the craft department puzzling. We have an excellent cards selection, good candles and incense. We sell an awful lot of knick-knacks and whilst I too would like to see more local work we sell a lot of jewellery. Clothes sales are booming and calendars are buoyant. If you can be more specific about what more you would like us to stock we will happily try to oblige.

In terms of additions you voted against ice cream and chocolate which somewhat contradicts our till figures. Favourites were bulk, fresh food and baked goodies.

A cheese shop seems like a good idea and you would probably make time to consult with one of our specialist healers. Pasta, fresh juice and fish would enhance the deli.

The overwhelming facility you are interested in is some kind of ethical banking facility. Failing that, a credit union and more food information would do nicely. Not surprisingly Internet access was the least of your requirements. But at least 33% of you are interested in home delivery.

Specific points we have taken note of concern general tidiness, though you understand our circumstances are somewhat challenging. We will be giving our fresh produce section more attention and nourishment (say hello, Anthony). The refurbished front entrance has been very well received with a general appreciation concerning both craftsmanship and choice of materials. We are very sorry about the alarm system. As our note to you explained, if we want to create more space then we have to sell our music in its cases. As this is a top target for shoplifters we needed to create some other deterrent. Hopefully by now they will be encased in their new wooden cases and be less intrusive as our physical development continues.

As a rough guide to renovations, the books and crafts section will have wooden floors, the apothecary cork, and the new food shop a mix of wood and tiles. New ceiling, lighting and fixtures (shelves) are a priority. More space, light and information. Departments will be individually designed and coloured. Walkways will connect trading areas to reduce any sort of big-barn atmosphere. We hope more walls will come tumbling down.

We are confident that we can create another 25 jobs putting another £300,000 or LETS [Local Exchange and Trading System] units into the local economy. Homes can be built for those who come. Those jobs are for people who will be doing what they can to make our projects and service as nourishing to you as possible.

We want/need a staff restroom and more space in the offices, and I think most of you will agree upon this as a priority. We work long hours and need more facilities for ourselves. Even a ‘smokers’ porch might manifest.

You understand the need to buy out the business.

We are now beginning the planning process. Starting with needing to create agreements with New Findhorn Directions (NFD) and the Findhorn Foundation’s management. Next will come artist impressions, layout proposals, new products selections and probably more GENESIS articles…

Meanwhile the need to raise sufficient funds remains. We are moving well with shareholders to fund the initial buyout. We still need more, so don’t be bashful! You will find more details of how the structure might look on the centre pages of this copy of GENESIS. We are now exploring government funding, ethical investors and corporate sponsorship.

We hope to qualify for help from both NFD and the Findhorn Foundation development funds.

We are encouraged by your help and support of the project thus far. Your help and encouragement is greatly valued by us. During the conference[1] we will be exploring the sustainability and nourishment aspects of the project with a daily focus group—you are welcome to attend (please see conference notes for details).

Finally we will continue to support our community by co-creating with other groups improved services and facilities. We sell tickets for the Hall; we are a major advertiser, sponsors and contributors to GENESIS; we service the FBCA [Findhorn Bay Community Association] and other notice boards, et cetera. For the next few months we wish to really commit to helping LETS develop as an economy for this community. If we were to achieve our buyout proposals and develop the restaurant I would intend that up to 25% of our trading with you would be in LETS currency, both local and national.

With LETS we could develop new ventures, part pay our staff, hopefully rent our land and pay for all our printing and so much more.

This could be a really inspirational and transformative change in one of the basic ways we collectively run our community. We would have our sense of wealth, intimacy and values greatlyenhanced in a nourishing way. In my opinion a giant step towards the visionary sustainable community that I want to both belong to and be nourished by.

Yours for myself, and for the vision of the new Phoenix that we are articulating.
© 1998 David Hoyle

Presenters: Hazel Henderson, James Hubbell, Lynne Franks, Robert Gilman, Satish Kumar, Ervin Laszlo, Milenko Matanovic, Dmitri Morosov, Bill Metcalf, Jill Jordan, Stephen Gaskin, Felix Dodds

Focalisers: Roger Doudna, Julia Zalazar

INTRODUCTION
Phoenix Community Stores Limited (‘PCS’) is a trading company based at the Park, Findhorn Bay, Scotland. The Park is also the location of the Findhorn Foundation and an emerging eco-village community project.

Over the last 10 years PCS has established itself as a leading independent retailer of what may be described as positive lifestyle products and services. They include organic food, fairtrade, ecological household goods, inspirational books and music, crafts and gifts, a full service apothecary and an organic bakery. The company is an active provider of community services, helped fund a local organic farm and is involved in various educational and alternative currency initiatives.

At this time the Findhorn Foundation through its trading subsidiary New Findhorn Directions Limited (NFD) is the majority shareholder and loan financier of the business. It has been agreed that the best interests of all parties will be served by a management led buy-out of PCS. A provisional “Heads of Agreement’ has been established with a proposed buy-out date of 30th January 1999.

It is the intention of the current PCS management that the buy-out be achieved with the support and funding of its existing stakeholders. These stakeholders to include customers, suppliers, community investors, ethic investment and institutional funding. It is envisaged that the primary initial investment will be via a not for profit company limited by guarantee which exists to support eco-village projects for the benefit of its community membership.

The PCS management believe that the full potential of the business will be best served by working with related projects to create an eco-village business alliance that would seek to provide a sustainable economic base for the benefit of the local community and be an educational and inspirational resource for the global eco-village movement.

We trust that you will find the project of interest. Should you wish to participate we enclose the relevant application forms and details. As part of our global thinking this document is also available via our website: www.phoenix-stores.co.uk

Yours in service
The Phoenix Management Team

BACKGROUND

1. The ‘Phoenix’ began life as a working department of the Findhorn Foundation. It then became a founding division of New Findhorn Directions Limited (NFD). The Phoenix left NFD to become the Phoenix Community Stores Limited in 1996 with the backing of NFD who became its primary shareholder and loan provider. It is now the mutual wish of the directors of PCS and NFD that the company become full independent.
2. Since 1996 (and before) the management and direction of the business has been led by David Hoyle, Jan Boultbee, Susan Tulloch and James Findlay. All of whom are active participants in the buy-out proposal and will form the nucleus of the new management board.
3. An agreed offer price of £35,000 has been established for the 90% shareholding which NFD currently has in the business. A condition of this price is the concurrent repayment of a loan of £145,000 currently extended by NFD to Phoenix at commercial rates of interest. The Phoenix has no other significant shareholder or loan commitments. The loan covered the value of stock and assets in 1996. It remains its approximate value.
4. Between 1.10.98 and 29.1.99 a new company will be formed ‘Phoenix-A-Rising Limited’ to purchase the shares and loan in Phoenix Community Stores Limited currently held by NFD. The new company will be funded by shareholding, loan debentures and through investment generated by the Ekopia Trust. The trust is being created to promote the development of the eco-village project at the Park for the benefit of its members and supporters. The trust will take the form of a Not For Profit Company Limited by Guarantee.
5. On 30.1.99 Phoenix-A-Rising Limited intends to buy out the shares and loans currently held by NFD in PCS. The minority shareholders and loan providers are expected to stay in place.
6. On 1.2.99 Phoenix Community Stores Limited will begin trading with Phoenix-A-Rising Limited as its majority shareholder.
7. Thereafter the primary purpose of Phoenix Community Stores Limited will be to develop the business for the benefit of its stakeholders. Those stakeholders will primarily be customers of the business.

OBJECTIVES

The primary objective of Phoenix-A-Rising Limited in purchasing the ‘Phoenix’ is to support
the sustainable development of the eco-village project at the Park, Findhorn Bay, Scotland.
We will achieve this by:
Operating the ‘Phoenix’ as a successful company which generates the income and profits required to meet our financial trading targets, pay an agreed return on shareholder investment, develop our capital value and support through investment and tithing in approved community initiatives.
Developing the ‘Phoenix’ to meet the needs and aspirations of its customers through the primary provision of products and services which nourish, inspire and .educate.
Offering the ‘Phoenix’ staff members an opportunity to work in a holistic business that provides adequate remuneration and career opportunities, participation in its development and the experience of work as a path of service to humanity.
Working co-operatively with like minded individuals and organisations in creating a sustainable economy for the eco-village project through trade, education and demonstration.

Existing Operations

Current Trade

With a turnover of £1 million the Phoenix is not only a substantial part of the Findhorn Community economy but is also one of the UK’s leading independent retailers of eco-lifestyle products.

From its conception as a new age bookstore serving the members and guests of the Findhorn Foundation the Phoenix has evolved over the years into a specialised shopping centre with customers living all over the North of Scotland. Findhorn Foundation related turnover is now about 30%.

A decline in Scottish tourism and a downturn in Findhorn Foundation guests have created challenges over the past three years but these have been largely offset by the growing local market for organic foods, ecological and fairtrade products and personal growth books.

A recent customer survey showed the business and its trading policies are appreciated and we had good feedback on how we can improve our business.

Beyond our retailing activities the bakery is expanding and recently baked its 100,000 loaf. We intend to develop both the retail and wholesale aspects. Mail order has been hit by the strong pound and competition from mail order clubs and internet services. We are now developing our own website and e-commerce facilities. We believe there to be good opportunities for us in this sector.

Location

The main Phoenix location of the Park benefits from guests and members of the Findhorn Foundation. Some 10,000 visitors last year. In addition there are approximately 500 people having some sort of relationship to the Foundation living on the Park and throughout the surrounding area. The nearby village of Findhorn including the bay and nature reserve is a popular destination for day visitors and the local town of Forres is on the main Aberdeen — Inverness transport routes. There are a number of complementary businesses and initiatives in the Findhorn peninsular area including organic farming, renewable energy, natural sewage treatment, vegetarian cafe, performing arts venue, craft outlets, water sports centre, nature reserve, Foundation gardens and visitor centre, local bayside pubs and a wide variety of healing therapies on offer.

Competition

The Phoenix with its range of products and services is a unique shop and as such there is no direct competition. However, indirectly, most of the supermarkets have nearby stores, Inverness has a Waterstones, there are a number of health food shops scattered throughout the region and Brodie Countryfare has some cross over ranges. The local EarthShare project has limited the sale of organic produce and internet based book suppliers are a real long term threat. Like good department stores if the Phoenix continues to innovate and maintain its high level of personal service then it should continue to flourish.

Ownership Property

The current Phoenix buildings are all on Findhorn Foundation property and are on indefinite leases. Whilst we would not wish to own the land we do wish to purchase the main Phoenix building. Currently valued at £48,000.

With regard to expansion NFD is the current tenant of the land immediately surrounding the main Phoenix. At this time NFD has agreed to release part of this area for immediate Phoenix expansion of the food shop. Any larger scale development would involve negotiations with NFD and the Findhorn Foundation. The current bakery building is due to be demolished by 2001.

Personnel

The four current Phoenix directors have worked in the business for a combined 25 years and David, the managing director, has worked in the wholefood trade since 1971. Despite an expected turnover of staff in a business such as ours the average staff stay three years. We have a strong and committed team base and expect that investment in training and staff share options will see continued developments in our ability to manage and improve the business.

Our remuneration and benefit package is reasonable for the area but will need to be improved if we are to both keep our current team and attract the required calibre of new members. This is particularly relevant if we are to develop workshop and training initiatives.

COMPANY OWNERSHIP AND STRUCTURE

Phoenix-A-Rising Limited

The company will be incorporated as a limited company on November 1st 1998. Thecinitial subscribers will be David Hoyle, Jan Boultbee, Susan Tulloch and James Findlay the proposed directors of the company. Susan Tulloch will act as company secretary.

The Company will have an authorised share capital of £1,000,000 divided in 10,000 share of £100 each. The directors will, initially, jointly subscribe for 10 shares.

The ownership being offered will be in the form of share debentures and through membership of a community association. This association shall take the form of a not for profit company limited by guarantee.

Shareholding Policies

(A) Shares will carry one vote per share
(B) There will be no individual shareholding greater than 50% of the issued capital of the company.
(C) The shares do not have a guaranteed right to a dividend. If a dividend is proposed by the directors and approved by the shareholders then each share will receive an equal dividend.
(D) If the company ceases to trade each share will receive an equal distribution of assets.
(E) Shares are only redeemable at the discretion of the company directors.
(F) Shares for redemption shall first be offered for sale of the company at a fair market value determined by the company.
(G) The directors would uphold the stated shareholder policy unless directed to change by a 75% majority of the shareholders.

Debenture Policies

(A) All debenture loan interest shall be payable at a maximum rate of 5% per annum
(B) Loan interest to be paid in an option of £ sterling, LETS or shares at par value.
(C) Debenture loans shall be for a minimum period of three years.
(D) The directors would uphold the stated debenture policies unless directed to change by a 75% majority of the shareholders.

Membership Policies

Individuals who collectively own shares in the company through their membership of the community association shall be entitled to the following privileges.

(A) One vote per individual/family membership
(B) Trading privileges as stated. These privileges to be contained is the associations articles of membership.
(C) Other privileges and participation in relation to the company as associations articles of membership.
(D) The directors of the company and officials of the association will jointly uphold the stated membership policies unless directed to change by a 75% majority of the shareholders.

It is envisaged that existing (non NFD) share and loan holders of PCS will exchange their holdings, at par, into the new trading company.

The directors of the company have resolved that the minimum individual shareholding will be £500. 5 x £100 shares. Thereafter shares may be purchased singularly. The community association will subscribe in 5 x £100 blocks only.

The directors of the company have resolved that the minimum individual debenture be £500. Thereafter debentures may be increased by a minimum of £100. The community association will be issued debenture notes in £500 units only.

After the initial subscription is successfully completed the company will them accept ‘LETS’ as an investment currency at a ratio to be decided.

Completed share, debenture or membership application forms, along with payment for the appropriate amount payable to _______, should be forwarded to_______ . The funds will be cashed and placed in an ethical interest bearing account at _______ bank, pending receipt of the initial £250,000 which allows the project to proceed. Interest on the account will accrue to the company if the project proceeds or be forwarded to the investor if the minimum capital is not raised.

The initial proposal is for £250,000 to be raised through shares, debentures and association membership. This will be achieved by 15th January 1999 Details as follows:

£150,000 – Via community association in the form of shares and debentures. Shares to be issued to a maximum 50% ownership of the company. Balance association debentures interest on an debenture to be in shares or LETS only.

£75,000 – Individual shares subscription.

£25,000 – Individual debentures.

£250,000 – Total

SALES MARKETING AND DEVELOPMENT

General

The retail world in the U.K., and in particular the food market, is becoming increasingly dominated by the major supermarkets and theme chain stores and the symbol group convenience store. Safe, convenient and efficient the retail sector is technology led with buying decisions ever more focussed to meet, and some would say manipulate, consumer trends. Home delivery is the logical outcome with the world of food delivered to your door. No need to interact with anyone.

there are few who have stood in the way of the supermarket food juggernaut. Crolla’s (Edinburgh), Planet Organic (London), Ingredients (Norwich), Harvey Nichols, Harrods and Fortnum and Mason all have food floors to take the breath away. This is the sort of company that the Phoenix wants to keep. What we have is the possibility of being a showcase rural food store. A cross between a farmers market and an urban deli, with organic standards matched to a commitment to fairtrade and quality.

As much as possible we want our food to be locally grown and minimally processed while not ignoring our obligations and needs in the global food market.

What is true of food is true of clothes, of crafts, of music and books. We want to sell products made by people we know and we want to sell them to our customers whom we also know. Personal service. Indeed sustainable service.

Through product selection, information and education we wish to be a marketplace in the traditional sense where we supply an infrastructure which allows the consumer to meet with the producer. If we can then take that a stage further and have our customers owning not only a share in the Phoenix but also a share in our local suppliers then things could get even more innovative and interesting. Back to the coop roots of working England. From there the LETS system could really come into its own and by careful marketing we can create wholesale trading markets. The bakery project is a good example. At the moment much of the ‘organic bread’ sold in the North of Scotland is baked in Cumbria from wheat grown in Canada. We can offer organic bread from wheat grown in Nairn, ground by a watermill in Golspie and baked by Trevor.

Better yet people can come from towns and villages all over Scotland. Learn to make organic bread and set up their own local bakeries. This is the future direction of the Phoenix. To be a showcase retailer, a trader, provider and producer of sustainable products and services and an educator in sustainable skills.

Future directions could include joint ventures to establish:

Accommodation                                         Cooking School
Catering                                                   Holistic Health Centre
Farming                                                                 Dojo
Food Production                                       Eco Village Centre
Clothes Design & Label                             Eco-Versity Training
Fairtrade Projects                                                         etc. etc.

Each venture would, like the Phoenix, be owned by a mix of staff, investors and the Ekopia Trust. This type of ownership should allow maximum co-operation between the participating businesses and create a sense of belonging for community members and customers. It is further envisaged that in the near future local suppliers and other businesses in the region would be able to participate. We could then all be part of an exciting experiment in rural sustainability.

Sales Marketing & Development:
by Department
by Activity

Food Department

More emphasis on fresh. Space a priority. Move the bakery instore. New counters for cheese, deli and patisserie. Local home delivery for bulk goods. Instore refill and bulk facilities. New air conditioned area for produce with staffed weigh scales.

Apothecary

Make department more self contained, less cluttered. Create space for customer information including computer programmes. Have consulting area for visiting specialists. Own label vitamins and cosmetics.

Crafts

Expand fairtrade philosophy. Emphasis local. More clothes and products made to our design. New shelf units and display areas. More stones and crystals. More eco-home products and creative materials e.g. paints.

Books & Music

New shelving and layout. Better signing of categories. Reading and listening space with chairs and tables. Cyber space with improved tuition. Improve personal order service.

Mail Order

Move into e-commerce on internet with full book, music and apothecary range. Personal service using technology.

Bakery

Become certified organic bakery. Then develop local wholesale business with Highland/Gateau Regale.

Improve checkout area and storage facilities. New entrance and aisle payout to suit wheelchairs, trolleys and pushchairs. New floor and ceiling. Replace book and craft layout. Make key staff more accessible to customers. Move tills to centre of craft shop and remove book information area. Replace with book and music desks. Face outside wall in stone and provide seating in front of shop. More flowers and works of art. New shop sign on roof above entrance.

Enrol in ‘Investor in People’ programme. More staff training in service, computers, product knowledge. Continue information gathering through trade shows, association membership etc. Internet and e-mail development to aid communication. Working exchange with other communities.

Home delivery by bike to Park/Findhorn. Co-create ethical banking/LETS services. Provide more product information. Support Genesis. Sponsor social events — e.g. Wine Tasting.

CAPITAL EXPENDITURE

PROFIT DISTRIBUTION

We believe that one of the major tasks for businesses in the future, if they wish to be ‘sustainable’, is how they distribute their capital and their profits. The present financial systems are no longer working.

The Phoenix will contribute to national sustainability by ethically meeting its tax obligations.

Up to 50% of the business will be owned by customers.

After tax distribution of profits is proposed to be:
25% To direct shareholders (includes staff)
25% To Ekopia Trust for benefit of members and the community.
10% Tithed to local (5%) and global (5%) projects connected with organic food or fairtrade initiatives.
40% Invested in the business.

EKOPIA TRUST: PROJECT PHOENIX

TARGET:

500 trading members
300 investment members

TRADING MEMBER:

Makes no capital investment but actively buys from Phoenix. Earns 5% discount on all shopping providing in excess of £500 per annum (individual) or £1,000 per annum (family). Discount calculated annually and paid out in Phoenix shop vouchers, LETS, or part shares.

INVESTMENT MEMBER:

Loans a minimum of £500 to Ekopia Trust fund interest free. Ekopia invests in Phoenix on behalf of member. Phoenix offers Ekopia investment members trading privileges .i.e %5 trading discount on all purchases; special promotions and events; discount calculated annually and paid out in Phoenix shop vouchers, LETS or part shares.

If declared Ekopia would receive Phoenix share dividends. These could be distributed to members or retained by trust, probably 50/50.