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March 31, 2009

Vox Pop Sells Shares, Claims Survival

vox-pop-033109.jpgDespite some sloppy business practices and resulting financial difficulties, the much-beloved coffee shop cum community gathering place Vox Pop will live to host another open mike night. The Ditmas Park blog reported an update from the current manager of the place. All it took was 172 local people coughing up $50 a pop (sorry, couldn't resist) to get the coffee beans grinding again:

Against what seemed that impossible odds, in a time of economic struggle for us all, our friends and neighbors came together to raise the funds needed to save this important anchor in our neighborhood. This action embodies the spirit that is Vox Pop -- The Voice of the People. And that voice was heard loud and clear. It is important to us all that we have a place that supports the arts and music and local, organic menu selections. A place for friends and neighbors to gather, meet and share.

We thought the place was $29,000 in the hole, so we're not sure how 172 x $50 gets them there, but glad to hear it!
Ryan: 'Vox Pop Will Survive' [Ditmas Park Blog]
Vox Pop Responds, Plans Town Hall Meeting [Brownstoner]
Vox Pop Teeters On The Edge [Brownstoner]
Photo by cck




Posted by Brownstoner at 10:15 AM | Comments (16)
Categories: Ditmas Park, Streetlevel

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Comments

So how many shares in total are outstanding? What is the market capitalization @ $50 per share? Did the original owners get diluted? Did the new "investors" get share certificates that may be useful someday in lieu of toilet paper?

Could someone come to them and invest another, say, $4,000-5,000 and oust the whole management and Board of Directors???

Posted by: daveinbedstuy at March 31, 2009 10:20 AM

DIBS -- as can be read on those other blogs, there's no expectation of return on investment. The only ROI is love and community and starshine... oh, and a coffee shop that will probably stay running for another few months until it has to close down again for ridiculous business practices.

Posted by: tybur6 at March 31, 2009 10:31 AM

I'm tempted to throw in $50 just to be able to get a business card made that says i'm on the board of directors, to hand out at bars.

'why yes, i do sit on a board *wink/smirk*'

'what company?'

'um, its a coffee shop actually. and there are 294 of us. wait, where are you going?'

Posted by: goldie at March 31, 2009 10:34 AM

Doesn't seem that there are a lot of stories of people putting up their own money to keep a business open. So maybe in the true Brooklyn Spirit, this establishment provides a sense of community rather than the Holiday Inn "No surprises" business model. As someone who would go everyday for a cappy, I'm glad it's coming back. It's one of a kind.

Posted by: Jebby at March 31, 2009 10:38 AM

Yes, tybur6...It sounds like its the General Motors of coffee shops!!!!

You sound particularly chipper today...did you get a "caulk job" last night???

Posted by: daveinbedstuy at March 31, 2009 10:41 AM

HA! I wish. Lately I've had trouble finding a woman-owned company that is skilled with caulk.

Posted by: tybur6 at March 31, 2009 10:43 AM

Wow - $50 "investment" and no return expected (and I assume no discount on coffee) - and people complain Starbucks is expensive!!!!

Posted by: fsrg at March 31, 2009 10:44 AM

How it actually works is this:
172 local people cough up $50 a pop
Hedge funds bid on a pool of toxic coffee
The treasury provides a non recourse loan for the balance of what's owed to the health department

Posted by: Bklnite at March 31, 2009 11:22 AM

This probably is technically against SEC rules, don't you think?

Posted by: brownstoner at March 31, 2009 11:52 AM

I think the SEC has bigger fish to fry Mr B...

Posted by: the chicken at March 31, 2009 12:15 PM

I didn't buy a share because I don't agree with Vox Pop's politics and especially their promotion of every crackpot conspiracy theory known to man. That said, I do like getting a cup of coffee there and am glad there is enough community feeling in my neighborhood to pull together for a cause. I sincerely hope the new management pays off the back wages owed to employees, and the community holds management's feet to the fire, or "the last fraud will be greater than the first"...

Posted by: sixyearsandcounting at March 31, 2009 12:17 PM

That place is a dump that is a health hazard that needs to be closed down.

Posted by: Xander Crews at March 31, 2009 1:21 PM

perhaps these people got too caught up in the obama fever, and stopped paying their bills/wages in anticipation of obama giving them lots and lots of free money.

Posted by: goldie at March 31, 2009 2:44 PM

It annoys me greatly when hippies try to run businesses.

DIBS: Somehow I doubt anyone involved in this venture actually knows what stock is or how one might go about issuing it. They basically passed around a hat. I doubt anyone got a pro forma capitalization table when they "purchased their shares".

Mr. B: I would guess the answer is no. They would need to think about NY state securities laws as well.

Posted by: lechacal at March 31, 2009 3:38 PM

Mr. B: I take it back. I would say that if they actually issued stock there is probably an available exemption from SEC registration (the intrastate exemption, which applies to offerings limited to one state, leaps to mind, and there are exeptions available for very small offerings like this). However, if they told people they were selling them shares in a business and basically just took their money without giving them equity in some legal form, that basically makes them Bernie Madoff.

Posted by: lechacal at March 31, 2009 3:45 PM

Goldie:

"Obama fever" was certainly not the problem. The Vox Pop folks declined to support Obama because he wasn't left enough for them, and, knowing the political purity requirements at Vox Pop, I wasn't surprised. What did surprise me was that they expressed their unhappiness with Obama by declaring that they were supporting McCain.

Posted by: arffl at April 13, 2009 11:03 AM

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