THE FUTURE of Littleton and Badsey Growers, the Vale of Evesham co-operative, is at the centre of a row between the board and shareholders.

A group of shareholders wants to sell LBG, which was put on the market some months ago. However, the board of directors does not - instead it wants to revamp and expand the operation.

More than 50 shareholders have now called an extraordinary general meeting on November 22 so a vote can be taken on a bid which would see the prospective buyer continuing to run LBG in its current form, including taking over the staff, with a long-term commitment to its future.

The shareholders point out the horticulture industry in the Vale has declined considerably in recent years and is likely to continue to do so.

They propose that, if the offer is accepted, each shareholder should receive £300 and the balance of funds be distributed according to individual shareholdings, which should be more than £5 a share.

They argue that the herbary, once considered the jewel in the crown, is under severe pressure with competition from abroad. Some machinery is out of date and will need replacing to meet required food, health and safety standards "at vast extra expense."

They say the requisites section is having to make sales with extremely low margins. The dangers of trying to expand with enormous added costs could be disastrous.

"The experience LBG Ltd had in the 1980's expansion should be a lesson to us all," the letter to board chairman Bill Arnold says. "LBG Ltd almost folded as a result of unwise expansion. The costs of doing so now are much greater and could very quickly fritter away the cash reserves of the company. We should not allow the directors to proceed with expansion without a comprehensive business plan and feasibility study."

The board has circulated a message saying it wishes to continue trading as normal and not to dispose of either the property or the business.

"Changes will be required to take the society forward into the 21st century," it says. "In undertaking such restructuring we recognise the importance of maintaining the underlying value of the society. Changes will be required in staffing, administration, buildings and, if possible, share structure.

"Many parts of horticulture continue to go through a very difficult period, there are far fewer growers than there were even five years ago. However, those remaining will continue to require the continuing presence of a competitive supplier of horticultural requisites. We feel that a much revamped LBG can offer that service and it is the best way for the long term."

The message concludes: "The board hopes to make an important announcement of the proposed changes in the near future. In the meantime, we urge all members of LBG, and non-members, to consider placing future business with the society, where it will receive prompt attention."