Partnership Proposal 1986
What follows are transcriptions of four documents relating to the Ragnarokr leather shop and dating from1986. The first two documents are the text of Steve Spring’s proposal for a partnership between his company “Leather Arts by Spring” and the Ragnarokr leather shop. The last two documents are copies of letters terminating Ragnarokr’s lease on the building at 33 Baldwin Street.
Steve Spring’s Proposal of June 1986
The following is a hand-written version that was dated June 3, 1986 and signed by Steve.
“That “Leather Arts by Spring” and “Ragnarokr” be amalgamated into one shop. All assets would be combined with a clear description of inventory, commencing on a day agreed upon in the future weeks prior to moving Ragnarokr.
This union would involve all tools, machines, leather, findings, and office supplies but perhaps excluding existing permanent work benches and overhead fixtures used in private studios. [Commissions on goods would probably remain intact.]
The new agreement would not exclude any present member of Ragnarokr. It would form a new business with equity (ownership) divided 50/50; i.e. an operating interest in the shop split as follows: 50% Steve and 50% other members.
Duties and responsibilities associated with running the business would be split under same percentage or allowances and plans for meeting those commitments agreed upon mutually.
In other words, the day-to-day operations of the shop would be decided upon by mutual agreement of both Steve and the Other Members or a spokesperson (like Mary). (Day-to-day operations include bookkeeping, sales, pattern design, wholesale and retail, maintenance, purchasing supplies, budgeting, planning and future investments/jobbed goods, etc.)
The day-to-day operations would probably be very similar to the existing set up, i.e. each party would continue to assume half the week and chores as has been done the past few years or mutually-agreed upon changes made. People would be invited and/or allowed to come in to use existing work space and produce on a variety of commission levels – co-op/consignment/direct labor, depending upon their own needs and the available finances.
This move has a number of advantages. (1) With the imminent move of Ragnarokr to a new location with a favorable lease of only three years, it formalizes the internal set-up and the functions and operations of the shop assumed by each party on a clear basis. Individual responsibilities are adjusted for and maximum time can be devoted to developing the business. MAXIMUM PRODUCTION. (2) It allows for continual group in-put both creatively in production and in administration while at the same time the 50/50 split indicates a commitment and responsibility recognized by each party. RECOGNITION OF EACH PARTY’S CONTRIBUTION. (3) It has great flexibility in that it allows those who have other jobs, tasks, interests, commitments to have a minimum of tasks other than straight production or to arrange a convenient schedule for those shop responsibilities that they do have. FLEXIBILITY. (4) It shows the formal commitment and security I need to justify investing my time in the operation, a stake in the future that I feel I need and that probably all other members feel too. GOOD FAITH”
Proposal for a Flexible Venture
The following is a typed Proposal dated June 1986. Notes were made on the sheet during the shop meeting that considered the proposal. The meeting ended with the acceptance of Steve’s proposal of June 3, 1986.
“Proposal for a Flexible Venture:
That all work be consigned under one common label (Ragnarokr) with room for individual identification.
All members pay a fee as a token of their commitment. (The existing members would equally share the current value. The fee would be payable in money.)
Non-leatherwork activities such as bookkeeping, window dressing, cleaning, shop duty, banking be shared seriously and equally among members (or remunerated)
If it is felt that a non-leatherwork activity cannot be divided (book-keeping for example?), it be treated as a paying job.
The idea of a higher financial goal, or at least an improvement in production, would be embraced wholeheartedly.
Profits, if any, would be divided according to volume of annual sales per member (after expenses, improvements, etc, of course).
No member to have a greater share in the responsibility or liabilities (or ownership) than another.
New members not allowed to join without the knowledge of all and the consent of a majority of existing members.
There would be a member meeting once a month.”
Handwritten note on the margins: Disband the shop- NO, Is there recognition that there are problems?-YES, Steve wants a decision made immediately about the 50/50 Proposal.)
The leather shop is evicted from 33 Baldwin Street
The following is a transcript of the notice that the building at 33 Baldwin Street was to be sold. It is a letter dated May 13, 1986 under the letterhead of Feldman and Weisbrot.
May 13th, 1986
Mary and Randy Rauton
33 Baldwin Street
Dear Mary and Randy:
Re Rental of 33 Baldwin Street – Nagel
We have received your letter dated April 29th, 1986, and appreciate the kind thoughts expressed.
The owners of the above property have determined to sell 33 Baldwin Street, which decision follows some anguished circumstances, but is final and out of necessity must proceed within a reasonable time.
We certainly appreciated the happy relationship of Landlord and Tenant with you these many years, and trust that your co-operation will be at hand in allowing the property to be inspected at reasonable times.
We cannot now advise you, nor indeed do we know whether your tenancy will be continued following the sale, but will make every effort to accommodate you, as is possible.
We also advise that circumstances of the rental charges requires a rental increase for the above property in the sum of $200.00 monthly and will be effective September 1st, 1986 for a total monthly rental of $1400.00 together with all other usual charges as in the past, in the event the rental of the above property continues in existence at such time.
We trust the above is satisfactory and sincerely convey to you our best wishes. We remain,
Yours very truly,
Feldmand and Weisbrot Per: Albert Weisbrot
The following in a transcription of the notice to Vacate. It is a letter dated July 29, 1968 on the letterhead of Feldman and Weisbrot.
July 29, 1986
Delivered by courier
Ragnarokr Leather Shop
33 Baldwin Street
Attention: Philip Mullins, Randy Rawton and Mary Rawton
Dear Sirs and Madam:
Re: Whitecap Estates Limited, Charles Nagel, 33 Baldwin Street, Toronto
Please be advised that we are the solicitors for Whitecap Estates Limited and Charles Nagel, the owners of the above-noted property in which you carry on business as a Tenant. We have been instructed to give you one month’s notice to vacate the premises and our clients therefore expect vacant possession by August 31, 1986.
Yours very truly,
Feldman and Weisbrot Per: I. Feldman