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HALIFAX – The Carrot Community Co-op grocery store on Gottingen Street has announced it is closing at the end of next week, citing financial problems as the reason.

In an email to members sent on Friday morning, the Carrot’s board of directors said they “have come to the conclusion that the current business model of the Carrot is not financially viable.”

“This decision has been an incredibly difficult one,” the email read. “We believe believe closing now will allow us to take time over the winter to explore the possibility of an alternative business model that may be viable.”

READ MORE: Community Carrot grocery store seeks investors with new development fund

The email said that over the past few months, the board has been seeking advice from food industry specialists, as well as Carrot members, which ultimately led them to the decision to close.

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The board said by closing at this time, they are trying to ensure enough money is remaining to pay employees, suppliers and creditors.

“We are tremendously grateful for the support the Carrot has received from the community,” the email read. Tweet This

In May of this year, the Carrot was looking for investors to help with their debt.

After winning $115,000 in an Aviva community funding competition, the Carrot bought and renovated their Gottingen Street building, which made the mortgage the largest debt source for the grocer. In May, they looked to the Community Economic Development Investment Fund for investors to help.

The store was offering shares at $100 each to community members, which could have secured its future. The goal was to reach $75,000 from community shares by the end of June.

The Carrot is a co-op grocery store that sells locally-sourced foods to people in a part of Halifax that has been described as a “food desert” in the past.

Friday’s email said the upcoming members meeting on Oct. 17 will provide members with a chance to discuss the closure and talk about moving forward over the next several months to see how the Carrot may be able to continue and grow.

The Community Carrot opened in the North End of Halifax just over a year ago.

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With files from Ray Bradshaw.