The Canadian Imperial Bank of Canada (CIBC) has reportedly filed a demand for repayment under the Bankruptcy and Insolvency Act against BC Tree Fruits Cooperative BB #:116324 and its subsidiaries Growers Supply Co. Ltd. and BC Tree Fruits Industries Ltd. (collectively, BCTFC).
In response, BC Tree Fruits filed for creditor protection in the Supreme Court of British Columbia on August 12, the cooperative said in a statement.
“The decision to seek creditor protection is due to BCTFC’s current liquidity crisis,” the cooperative said in a statement released by FreshPlaza. “There are many factors that have led to this crisis, including declining fruit volumes, increased competition from local packhouses, aging facilities, outdated equipment, pricing pressures in the local market and Washington state, a decline in BCTFC’s contract growers/members, and significant impacts from climate change.”
The cooperative is struggling to right-size its business through initiatives such as an “unpopular” consolidation plan to modernize equipment and divest underutilized properties, the statement said.
“Unfortunately, this has resulted in numerous attempts to block land sales, make board changes or change corporate governance,” resulting in lower producer yields for the 2023 and 2024 harvests, the statement said.
“The latest turning point in BC Tree Fruits’ already precarious financial position was the unexpected and significant crop decline due to unusually severe weather conditions in 2024,” the cooperative said, announcing its closure on July 26.
BCTFC is seeking approval of a sale and investment solicitation process for its assets.
