A North End supermarket is facing an uncertain future.

The building, which houses Neechi Commons, an indigenous-run business featuring a restaurant, arts and crafts and a grocery store, has been put up for auction because of financial challenges.

Louise Champagne, president of Neechi Foods Co-Op Ltd., said it owes the bank $3.8 million and has run into “an operating challenge.”

“At this point the credit union is calling their loan and they’re concerned about their mortgage,” said Champagne. “It gives us an opportunity to refinance and address this debt that’s been an issue since we started renovating.”

“Basically it’s an opportunity for us to restructure our financing.”

Assiniboine Credit Union president & CEO Kevin Sitka said putting the building up for auction wasn’t an easy decision.

“At ACU, we’ve done everything possible to avoid this day,” said Sitka. “We certainly know the social impact Neechi can have.”

“We promote Neechi...we’ve done all of this because we understand the service Neechi can deliver.”

Sitka said an auction date has been set for July 12. The minimum bid on the building is $3.8 million.

A community meeting was held Wednesday morning to look for ways to save the business.

“We were aware this was coming,” said Champagne. “For us it’s always been a concern, absolutely.”

“We think it’s a very positive thing…we’ve created a community asset here and I really think it’s important that people come together and figure out how to keep it going, how to ensure that it survives.”

Sitka said Assiniboine Credit Union is willing to work with Neechi.

“We are certainly open to genuine solutions prior to the auction date,” he said.

If the building is sold, Champagne hopes the new owner would be willing to let Neechi stay.

“I hope we find a compatible landlord, that would be in our favour, of course,” said Champagne. “We’ve been hoping that could happen or figure out a way our financing could be restructured so we can hang on to the land and building.”

Champagne said Neechi provides groceries in a “food desert” and helps support local food suppliers.

At one time, Neechi had 45 employees, but now has 35 employees and volunteers.

Champagne said Neechi hasn’t laid off any employees, but also hasn’t filled vacant positions due to operating challenges.