The small profits achieved by the Upper Murray Community Bakery in January and February have been offset by a decrease in custom caused by the streetscape project.

“The bakery is currently operating at deficit of approximately $4000 per week, which is completely unsustainable,” said Corryong Neighbourhood Centre (CNC) co-ordinator, Sara Jenkins. The CNC operates the bakery as a community enterprise.

“The change from the small surpluses we had attained in January and February is the direct result of the impact of the streetscape works on bakery sales,” Sara said.

“Since works commenced on February 23rd, bakery sales have been down by 29 per cent including three days we were unable to open. That’s a total of $29,000 less in sales than the same period last year and 2024 was already the lowest sales year since 2017.

“Costs and staffing remain tightly managed and the bakery staff are doing their best to respond to the constant changes, promoting that we are open and our products but that sort of drop is too large to cover.

“There is no indication that there will be any form of financial compensation from Towong Shire Council, despite us begging for the works to be done over winter for the past three years and it could not have occurred at a worse time for the CNC.

“The profitability of the bakery is the key to us avoiding insolvency and this is no longer even close.

“We will continue to operate through the bush festival and Easter to see how much can be recouped but in reality, we are now falling significantly behind with supplier payments and have never been profitable over the quieter winter months, so it is a possibility that the CNC will not continue to operate the bakery in the second half of 2025.

“On a more positive note, our fundraising total is now sitting at $47,600 which has been the absolute saviour for the CNC being able to continue to operate.

“All donations are being used to deliver core services and a minimal youth program, which requires around $15,000 per month.

“We desperately need donations to continue to keep the doors open until our core government funding is reinstated.

“A big thank you to all the individuals and community groups who have contributed so far.”

Tax deductible donations (over $2) can be made through the UMIF FRRR/donation account at https://app.etapestry.com/onlineforms/TheFoundationforRuralRegional/UMIF.html.

“In the meantime we continue to keep costs to an absolute minimum,” Sara added.

“Our suppliers are being very supportive and reasonable but it is becoming more and more difficult to provide regular and/or timely payments and quite soon that is going to result in supply stoppages.

“However, additional sales over the festival and Easter should ease the pressure and enable us to catch up with suppliers.

“Our ATO payment plan is also working, with the February BAS being paid when due.

“In addition to ongoing financial and strategic planning, monitoring and reporting, which we already do in conjunction with our primary stakeholders, our plan for recovery and sustainability includes returning the bakery to profit; continuing our fundraising efforts; reducing costs; and bringing creditors up to date and keeping them there.

“We are also trying to secure an ongoing Neighbourhood House contract.

The Department of Families, Fairness & Housing (DFFH) has advised that an audit was being organised to be conducted this month.

“Selling assets and closing unfunded aspects of the business are also being considered by the CNC committee.

“We have also sought external financial and legal advice to support our required actions and the decision was made to engage the services of an Albury insolvency advisor.”

A further update on the financial aspects of the CNC and its enterprises will be provided next week.

This article appeared in Corryong Courier, 3 April 2025.