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within a day to someone else. In 1996, an old Wal-Mart building
in Bonham that was bigger than what petitioner needed became
available, but the lessor did not want to lease only a portion of
the building. Properties were last reviewed in McKinney in 1996.
In 1997, the board again considered the possibility of a
store in Bonham, but most options would have involved the
purchase of land and construction of a building, which the board
felt was cost prohibitive. The board decided that consideration
would still be given for the right opportunity.
At the February 24, 1995, and March 4, 1997, board meetings,
Bostwick advised the board that a safe level of cash reserves was
necessary to finance possible future store locations and that the
Board should set aside adequate retained earnings to fund such
projects.
Despite efforts to locate suitable property, petitioner did
not purchase or lease another store location during the years in
issue. Petitioner had concerns regarding its expansion, because
it feared a possible rift in the family in 1995 when it removed
David Pedigo from the board and reduced his job responsibilities.
Also, Lay-Z-Boy, which was petitioner’s number one vendor and a
nationally recognized quality furniture manufacturer, would not
allow petitioner to put its products into the McKinney market
because Lay-Z-Boy already covered the McKinney market.
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