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Purely Organic

Why did the firm go out of business?

Just before Christmas 2007, discussions between the owner of land occupied by Purely Organic terminated without agreement. Faced with a large increase in costs, Tony Free decided to relinquish the tenancy of the land and buildings. Practically, this meant the end of the business.

However, Tony has retained the trading name of Purely Organic and the website http://www.purelyorganic.org.uk. It is clear that he intends to find another location for the business. He is believed to be actively searching for new premises.

You may choose the analyse this business more closely and, in light of their effective closure, speculate as to other reasons for its demise. Some of the issues this might include are listed below:

• Uncertainty over future costs due to disagreements with the landowner.
• Poor trading environment with Russia
• Lack of effective planning as future threats were not anticipated.
• Desire by business owner to expand activity too rapidly.

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