A retailer that received a $212,000 grant to set up shop downtown for at least 18 months left after just six months, but the organization that provided the grant is not planning to sue to get the money back.
The grant that Good Goods Company received in October 2023 from the Edmonton Downtown Business Association's Downtown Retail Project was ultimately funded by the province. Good Goods opened a store at 10250 106 Street NW from April to September before closing and relocating outside of downtown. Nonetheless, the EDBA doesn't feel like it has any recourse.
"We would have to sue them to get any funds back," executive director Puneeta McBryan told Taproot. "The (legal) advice that we've gotten is … we're unlikely to be successful in getting any money from them, and the legal costs and the resources that we would put into trying to get that money would probably not be very fruitful." McBryan added the EDBA has no plans to sue Good Goods.
Four other grant recipients also received $212,000 to expand to or to set up downtown and build the area's vibrancy. Soon to open are Foosh at 10150 104 Avenue NW and The Growlery Beer Co. at 10180 101 Street. Meanwhile, Obj3cts is already open at 10356 Jasper Avenue NW, and Le Belle Arti has opened a showroom for the B&B Italia furniture brand at 10130 105 Street NW.
In November, Good Goods opened a physical location inside Little Brick, located in Riverdale, and continues to also sell its products online.
In an email, Good Goods co-founders Aga Wajda-Plytta and Nina Karpoff told Taproot they were unavailable to answer questions about the grant but provided a statement.
"Good Goods Company Ltd. was selected to bring vibrancy to downtown Edmonton, and while our time there had its challenges, it created incredible opportunities," the statement reads. "Being downtown led to our exciting partnership and investment with River Valley Hospitality, known for Little Brick, Dogpatch and Bread+Butter, enabling us to support local makers in new ways. This investment & partnership reflects the connections and momentum sparked by our downtown experience, and we look forward to continuing to uplift Edmonton's creative community."
Good Goods operated a pop-up for "a few months" at Manulife Place ahead of opening its short-lived downtown storefront, McBryan said. She added the specific clause in the grant agreement was about signing a lease at a downtown location for at least 18 months, and the expectations for operating that location for 18 months were "not really clear."
On that lease, McBryan said the grant stipulated Good Goods could use some of the funds for three months of rent in addition to the three months of free rent that Baramy Investments, the landlord, provided. McBryan added that Good Goods moved out when it could not pay its rent after that period, and that the lease was for five years. "That landlord has grounds to pursue them," McBryan said. "Knowing most landlords, that's probably going to happen."
Taproot requested a comment from Baramy but did not receive one by press time.
The downtown Edmonton storefront that Good Goods Company once occupied. The retailer occupied the space after receiving a grant from the Downtown Retail Project but left downtown after six months. The space is now up for lease. (Colin Gallant)
McBryan said Good Goods acted in good faith for the grant, from the business association's perspective, and the funds spent on the business are far from a total loss.
"I would hate for there to be a perception that this business, these people, got this grant money and ran off," she said. "That's not what happened. We have literal receipts — the money was spent as it was supposed to be spent, and the money stayed downtown for the vast majority (of time). We are much more likely to have another retailer downtown, operating in that space, as a result."
That greater likelihood is because Good Goods, which carries a variety of Canadian goods that meet its ethical standards, spent most of the grant to upgrade the storefront's interior, McBryan said. Some improvements include custom-built shelving, a racking system, and a reception desk.
"A lot of small businesses wouldn't be able to do that," she said. "When we think about it, looking at that space and knowing the opportunity that's there, we're really hopeful that it still ends up being a great retail space for the right operator."
The storefront Good Goods has vacated was once Metro Billiards and is listed for lease by Baramy as the Creamery Building.
An additional lesson McBryan said she learned from the Downtown Retail Project came up during the business association's most recent Imagining Downtown event. Downtown retail struggles because it is too spread out, she said.
McBryan and the EDBA's economic development committee, which is made up of small business owners and office and retail brokers, selected the grant recipients. McBryan said they offered input on strategic locations but Good Goods had a very specific vision for what it wanted.
She also said the province wasn't upset about the outcome with Good Goods, was in the loop throughout the granting process, and knew it was taking a risk. "As far as their measurement goes, to have five businesses make this investment downtown and do all this is pretty exciting," she said.
McBryan said she hopes the experience gives Good Goods more insight on how to succeed.
"I hope that they learned a lot of lessons. We certainly learned a lot of lessons," she said.