Future of Dixie Tobacco Unknown

Source from:  bolivarcom.com Aimee Robinette Thursday, Apr 24, 2008 04/25/2008

The date of the reopening of Dixie Tobacco is still unknown as the operators of Forest City Grocery work to figure out what to do after being closed for over two weeks by the Mississippi State Tax Commission for an alleged misdemeanor. Forest City Grocery Attorney Gerald Jacks said no charges were filed or actions taken against the company. Over 50 jobs were left in limbo as the commission spent eight hours scouring the facility and took a truck load of computers and inventory, rendering the business unable to continue day-to-day operations. Even now, with the return of the computers, the business is playing catch up and trying to pick up the pieces. Forest City Grocery, which purchased Dixie Tobacco in 2006, was under scrutiny for a law called the Unfair Cigarette Sales Act. The law under Sec. 75-23-7, which deals with sale at less than cost; rebate in price, reads that it is unlawful for any wholesaler or retailer, with intent to injure competitors or destroy or substantially lessen competition, to advertise, offer to sell, or sell, at retail or wholesale, cigarettes at less than cost to such wholesaler or retailer, as the case may be. Jacks said in his 40 years of practicing law he has never seen such action taken for an alleged misdemeanor. The action taken by the state tax commission may have cost the residents of Shaw and employees of the business a tax base as well as a mainstay business, which opened in the 1940s. David Cohn, owner of Forest City Grocery out of Arkansas, said the business probably lost millions of dollars in sales and an unknown amount of customers. Cohn said "personally as the owner of a business" he felt the situation was very bothersome by the way it was handled. "It was bothersome, very disturbing to go to a company that has been opened for over 60 years and have these people laid off," Cohn said. "It is an excessive amount of business and customers that we have lost since this occurred." Cohn added that he would also assume since the economy is tough most of their employees have probably gotten other jobs. Kathleen with the state tax commission said the commission could not comment on tax issues or answer questions as to why such drastic measures were taken for a misdemeanor. They could not answer how the business could recoup the money lost from being closed for over two weeks or why no other business in the state was investigated on similar charges. "We cannot discuss private tax matters," she said. Enditem