'THE MERC' LAUNCHED

Coudersport Mercantile board members Ed Pitchford and Elaine Silverstrim answer questions about the proposed community owned clothing store. The first stitches have been sewn in the plan to weave a community-owned clothing store into the fabric of Coudersport.

Seventy people ignored Tuesday's driving snow and painful cold to gather at the courthouse to see the public unveiling of Coudersport Mercantile, a forprofi t corporation set up specifi- cally to launch a clothing store in the 10,000 square foot facility that used to house JCPenney.

Warmly referred to as "The Merc," the store will be owned by a large group of shareholders, operated by a board of directors and ran on a day-to-day basis by a business manager.

Arranged by an already-in-place board of directors, the meeting was called to accomplish two specific goals: first, to share the vision with the community; second, to begin soliciting investors, who will not only provide the seed money for the business to get off the ground, but who will also collectively own the business and elect its board of directors each year.

Shareholders emphasized that birthing the store is more than just a reaction to JCPenney's exodus from Coudersport a year ago— it's about replacing perhaps the most critical block in the foundation of Coudersport's main street and bringing back a business that served thousands of peoples' needs for the better part of a century.

"Whether or not this idea becomes a reality, there is a desperate need for a clothing store in Coudersport," said John Wright, a Coudersport business man who recently traveled to rural Powell, Wyoming where nearly the exact same concept is being successfully employed.

Wright said his experience in Powell made him believe that the idea of a community-owned mercantile "is terrific and will work here."

"Their situation paralleled almost exactly what we're going through in Coudersport," Wright said of Powell, population 5,300. "But, I think we are in a better position because we can draw (customers) from neighboring

towns. They have no regional draw. Their kind of isolated on an island out there."

Wright made arrangements to meet with the Powell mercantile leadership after Jubilee owner Stan Swank turned him on to an article in a business magazine.

"It was fascinating to see what they've done in that small town," Wright commented. "People with interest in saving their community invested.

But, the store is profiting and their investment has become a business investment, not a charitable one."

Goal for the local venture is to ultimately sell 1,000 shares of common stock at $500 apiece. The $500,000 will be used to purchase the inventory and cover other start-up costs. If garnering the start up cash goes well, said Merc corporate board member Ed Pitchford, the business could start moving in as little as six months. But, the board has also set a deadline for its success or failure. "By Dec. 31, 2009, we'll make a decision whether or not this is a 'go' or 'no go,' he said.

"Corporate America isn't going to come back and solve our problems," Pitchford continued. "We need to take action and do it ourselves."

The store will focus on apparel— shoes, clothing, belts, ties, etc., but since it will be locally-owned, Wright explained, it'll also have the ability to be "responsive to what the community is looking for."

Pitchford said that once $200,000 has been raised, specific steps to launch the business will begin, the most important of which, he said, will be hiring a manager.

"Finding that person will be the single-most important decision we make," Pitchford said. "We believe that person will be the most critical component in whether this venture succeeds or fails."

That person, the board explained, will need to have experience in both the fashion/clothing industry and marketing.

Beyond the manager, it is expected that three full-time employees will be needed initially and as many as five part-time workers. Those numbers, said the group, are an educated guess that are part of the "components" of a developing business plan.

While the board waits for stocks to sell, they are being aided by the people who have shared their experiences and provided advice as to what pitfalls to avoid.

In addition, the Powell corporation works with a buyer who buys inventory at trade shows for them and for several other clothing stores. The buyer has offered to do the same for the Coudersport operation.

That, board members emphasized, will give The Merc more buying power and enable it to "buy (inventory) at a reasonable price and sell it at a reasonable price."

JCPenney's reported $1.5 million dollar operation in Coudersport is evidence that the store can work— and profit, but more importantly, it can sustain.

"We can have peace of mind knowing that it's our business in our town and we're in charge," board member Elaine Silverstrim emphasized. "We won't be victims. No one can rip this out from under us. We'll be controlling our own destiny and our childrens'."

Under the corporate bylaws, no one person can own more than 20 shares. They are available immediately. To get an application, see board president Walter Baker at the Hotel Crittenden. Or, call him at 274-8320 and an application can be sent to you. Stocks will be issued immediately.