HISBE – How It Should Be
HISBE Food CIC (‘HISBE’) is a rebel supermarket based in Brighton, set up to demonstrate an alternative way of shopping. HISBE’s distinct brand is based on five principles:
ETHICS-LED. HISBE is independently certified for authentic ethical trading practices by The Living Wage Foundation, Social Enterprise UK, The Social Enterprise Mark and Ethical Consumer Organisation.
SUSTAINABILITY. Developed a bespoke sourcing policy, The HISBE Way, based on principles of sustainability in food and farming.
LOCAL. Local produce now accounts for 44% of all HISBE’s spend on stock and is a steadily growing proportion of the offer.
LOW WASTE. Offer hundreds of products packaging-free, so that customers can buy only what they need or want.
COMMUNITY SPIRIT. Create a friendly, community vibe for HISBE, in the customer experience in-store, in social media online and in person around Brighton and Hove.
HISBE has been lossmaking and been funded to date through loans whilst it reaches sufficient scale. The operation of the second store in Worthing is forecast to bring the company to profitability, but this cannot be guaranteed.
7 years, repayable in full on 31 January 2027
5% gross per year payable on 31 January each year commencing in 2021, (net of UK basic rate tax). Payment of interest and repayment of capital are not guaranteed and are dependent on HISBE's successful expansion. Interest will accrue from the date the bonds are issued.
The bonds are unsecured, so bondholders will rank equally with HISBE’s other unsecured creditors and behind any secured creditors and preferential creditors on insolvency.
Early repayment option
The directors can, at their sole discretion, repay the bonds in full from 31 January 2023.
Social investment tax relief
HISBE has received advance assurance from HMRC that the bonds should qualify for SITR, however SITR qualification is not a certainty and can only be applied for once the bonds are issued.
Bonds are transferable but are not listed on any investment exchange which means that bondholders will have to find a willing buyer and agree a purchase price with them. Investors should therefore be prepared to hold the bonds for their full 7-year term.
The minimum raise for the offer is £400,000. If less than £400,000 is raised, monies will be returned to investors with no accrued interest.
Close planned for noon on 27 February 2020 unless the £450,000 target has been reached earlier or the offer is extended by the directors at their sole discretion.
Capital at risk warning
Past performance is not an indication of future performance. Capital is at risk and returns are not guaranteed.