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THE HEALTH NUT

Colleen Sharen and Vanessa Strike wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of
Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca.
Copyright © 2008, Ivey Management Services

Version: (A) 2009-08-11

FALLING IN LOVE: THE HEALTH NUT

Late in the afternoon on January 20, 2006, Chris Bregmann hung up the phone. Her account manager had just called to tell her that the bank was not going to extend any further credit to her small retail natural health products (NHP) store located in Grand Bend, Ontario.
Bregmann and Vince Bury, her life and business partner, had owned The Health Nut since May 2003.
While they had successfully grown sales, the business was not generating enough cash to sustain itself and provide the partners with adequate compensation. As a result, the business relied heavily on borrowing from the bank.
Now that the bank was no longer a source of financing, Bregmann and Bury had a major problem on their hands. What should they do now? Something was going to have to change. They had about four weeks left before the business ran out of cash.
THE HEALTH SUPPLEMENTS INDUSTRY IN CANADA

According to the Canadian Health

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