*This article was updated from an earlier version to include a statement from Calgary Co-op below.
Fiducia Infrastructure, a private investment firm with expertise in turnarounds and real estate, is calling for changes at Calgary Co-operative. The firm alleges that financial mismanagement and governance breakdowns have put the member-owned organization at risk of collapse.
A letter sent to the Calgary Co-op board outlines Fiducia’s proposal for reform. The plan includes appointing independent directors, forming a separate property company, and bringing in qualified executive leadership to guide a turnaround. Fiducia has also launched a campaign website, SaveCalgaryCoop.com, to rally the organization’s more than 400,000 members.
“Calgary Co-op’s current leadership has presided over a steady erosion of performance, accountability, and member confidence,” said Albert Guido, Managing Partner at Fiducia. “This is not a governance structure built to serve members — it’s one designed to protect insiders.”
Acquisition Overpayments and Operational Losses
Fiducia points to several failed investments that it says have damaged Calgary Co-op’s financial health. One of the largest concerns is the 2021 acquisition of Care Pharmacies. The Co-op paid more than $160 million, despite external valuations estimating the company’s worth between $6 million and $10 million. Fiducia says the purchase reflects an 80-times EBITDA multiple, far above industry norms.
Another major concern for Fiducia is the acquisition of Willow Park Wines & Spirits. Calgary Co-op recorded $51 million in goodwill related to the transaction, although the business was reportedly generating just $3 million per year in profit. Fiducia says the acquisition has not delivered any measurable return and continues to weigh on the Co-op’s finances.
Derivatives Exposure Raises Solvency Concerns
In addition to what it says are questionable acquisitions, Fiducia is raising alarms over a growing financial liability. The Co-op is reportedly facing over $440 million in derivatives exposure, with obligations due by 2027. The firm claims this exposure was not properly disclosed and could lead to insolvency.
Last year alone, Calgary Co-op reportedly lost $5.3 million due to these interest rate contracts. Fiducia alleges the Co-op has resorted to selling off inventory to manage its cash flow.
“If Calgary Co-op were a publicly traded company, this leadership team would have been removed years ago,” Guido said.
Real Estate Strategy Under Scrutiny
Calgary Co-op owns a substantial real estate portfolio estimated at more than $800 million. Fiducia says the portfolio has underperformed due to poor capital allocation and a lack of professional oversight.
The firm highlights several recent projects, including the newly opened Oakridge location, as examples of what it calls financially unsound investments. Fiducia says the Oakridge development involved over $35 million in land and building improvements. Given typical margins of around 3.4% on grocery and pharmacy sales, the firm argues it is virtually impossible for the store to generate a sustainable return on that investment.
To break even, the Oakridge store would need to generate over $100 million in annual sales, a threshold that no current Calgary Co-op location reaches. Fiducia says these numbers reflect a broader failure in return-on-investment planning and capital deployment.
As part of its proposed solution, Fiducia says it is calling for the creation of a dedicated property company (PropCo) to manage the Co-op’s real estate assets and improve financial transparency.
Leadership Vacuum and Board Entrenchment
Calgary Co-op has not had a permanent CEO since October 2024, when former CEO Ken Keelor departed. The position remains unfilled ten months later.
Following Keelor’s departure, another Board Chair assumed responsibility for risk management. Fiducia argues this concentration of oversight was inappropriate and suggests a breakdown in governance separation between board and management roles.
The firm also alleges the board has failed to enforce its own term limits. It says some directors have remained in place for eight to nine years, reportedly using interim reappointments to bypass bylaws. Fiducia says this practice undermines member accountability and isolates leadership from necessary scrutiny.
Fiducia’s Plan for Change
Fiducia is urging the board to immediately appoint four new independent directors with experience in retail, governance, and capital strategy. It is also calling for the appointment of an Executive Chair or Interim Strategic Advisor to lead the turnaround.
The firm has submitted a private offer to acquire Calgary Co-op’s land portfolio. The proposed transaction is valued between $150 million and $200 million, backed by a $10 million deposit to begin due diligence. Fiducia says it expects resistance from the board and has released its proposal publicly to ensure members are informed.
Despite the proposed acquisition, Fiducia says it does not seek control of the organization. Its goal, according to the firm, is to restore financial discipline, protect member interests, and prevent further value destruction.
Calgary Co-op Responds to Fiducia’s Allegations
In response to the public campaign and claims made by Fiducia Infrastructure, Calgary Co-op issued a statement rejecting the firm’s assertions and defending its governance and business practices.
“Fiducia’s press release is filled with inaccuracies, basic factual errors and numerous assumptions that show a fundamental lack of understanding of Calgary Co-op’s business and our robust governance practices. Even a casual reading of our audited public disclosures would reveal a fundamentally different and much more accurate picture than what Fiducia has attempted to present.
We are always interested in constructive dialogue with our stakeholders and consistently seek feedback about how we can serve members better, operate more efficiently and create even more sustainable and lasting value in the community. We look forward to continuing these discussions, and our Board of Directors and management team remain focused on executing on our strategy, purpose-built around our 400,000 member-owners, the communities we serve, and our producers, growers, vendors, and community partners.”
For More Information:
Visit: www.SaveCalgaryCoop.com
Media Contact: SaveCalgaryCoop@gmail.com
