SOREDI won't recoup losses on loan to Allyson's owners

ASHLAND — The fixtures from defunct Allyson's of Ashland are being hauled away for resale, the spaces soon will be up for rent, and Southern Oregon Regional Economic Development Inc. — which loaned $250,000 to Allyson's owners — will not be able to recoup losses by foreclosing on the owners' home.

SOREDI in 2007 loaned $250,000 to partners Lynne Galligan and Steve Holt for their Ashland operation, mainly to expand Internet sales, with their home as collateral. But foreclosure by the mortgagee left nothing for SOREDI, said Executive Director Ron Fox.

The SOREDI funds are from a revolving account which, when repaid, is loaned out to other small businesses in Jackson and Josephine counties. Fox said the failure of the loan "will impact" SOREDI's lending efforts.

"We were not in first place," Fox said of the home.

Fox in February called the loan due when Allyson's fell several months behind on payments, following failure of its Bend store. The deli, wine and kitchenware store was successful until business plummeted in the economic crash of 2008.

Using Steve Wall Auctioneers of Jacksonville, SOREDI is removing retail inventory and non-affixed equipment and furnishings for resale, said Fox, adding that no real estate is being held as collateral.

The owner of the Ganiard Opera House building, Brent Thompson, said SOREDI is paying rent on the five spaces that made up Allyson's and that he would like to rent them in some combination as a bakery, prep kitchen or teaching kitchen, with the 2,100-square foot upper floor being a separate unit.

"I am showing the five spaces and explaining the location of the former partitions before those spaces were combined to become Allyson's, but I have given out no lease drafts yet," Thompson stated in an email.

Galligan had been trying to sell the Ashland store when SOREDI foreclosed on the loan.

Fox said SOREDI should have items of the old store cleared out by the end of the month.

John Darling is a freelance writer living in Ashland. E-mail him at

Share This Story