Teaching Note: Reyes Hardware Store: challenges in the family business

Reyes Hardware Store (RHS), a family-owned business in Guadalajara, Mexico, faces governance and family challenges that threaten its sustainability. Founded by Antonio and Carolina Reyes, the company grew during the COVID-19 pandemic, expanding to three branches and a distribution center (DC). However, this growth occurred without formal structures, defined salaries, or financial transparency. Key issues include discretionary resource use, informal accounting by the owners’ son, high staff turnover and no succession plan. Tensions escalated when Antonio’s affair led to his separation from Carolina, destabilizing both family and business dynamics.

This case immerses students in the complexities of managing a growing...