The restructure was necessary for Foodworks to continue trading profitably in the shadow of supermarket giant Woolworths.

While Woolworths had impacted significantly on Foodworks’ operation, the co-op remained in good shape and was in no danger of shutting doors, Mr Ainsworth said.

“We are in good financial order. We paid a two percent dividend last year and we will pay that again this year,” he said.

Foodworks employs about 100 people (including casuals). Expressions of interest in the voluntary redundancy offer closed last week (20th).

“We are encouraged by the response,” Mr Ainsworth said.

“We have spent half a million dollars upgrading supermarket facilities and the future for Foodworks looks good. It will be business as usual.”

The proposed Pacific Highway bypass of Macksville was considered by the co-op board when putting in place its fine-tuning and restructure plan. However, it would not have a marked detrimental effect on the Foodworks’ operation, Mr Ainsworth said.

In fact, down the track, it could prove an advantage.

The co-op’s other business, its Macksville drive-through liquor outlet, had traded strongly throughout last year and was “doing much better than expected”.

Mr Ainsworth said the co-op overall was in good shape and the board had taken measures to ensure it had a sound future.

His confidence, however, was not shared by Macksville’s Karlene Mowle.

She said in a letter to the Guardian that everyone should be made aware of the serious situation at “their local Foodworks store”.

The call for voluntary redundancies was a drastic measure and indicated that worse was yet to come.

“As a member of the community I want to stand up for the underdog and I think that everyone needs to be aware of the situation,” she said.

“The co-op has tried to hide the real situation for whatever reason, but laying down and giving up is not going to help the many locals who rely on the co-op for their livelihood.”

The community needed to rally behind Foodworks and other businesses affected by Woolworths trading in Macksville.

“If the co-op goes, there will be no competition for Woolworths and we will end up having to pay whatever they deem appropriate for our groceries,” she said.