A hearing is scheduled today after 小蓝视频 Tree Fruits Cooperative officially filed for creditor protection on Monday.
The hearing is set to take place in 小蓝视频 Supreme Court in downtown Vancouver.
小蓝视频TFC is seeking a stay of proceedings and remedies for 10 days, the approval of interim financing and is requesting a comeback hearing on Aug. 23.
A news release from 小蓝视频TFC says that on Aug. 6 the Canadian Imperial Bank of Commerce issued a demand for repayment of debts owed by the cooperative and its subsidiaries, Growers Supply Company Limited and 小蓝视频 Tree Fruits Industries Limited.
“Many factors that have led to this crisis, including decreasing tree fruit volumes, an increase in local packing house competition, aging facilities, aging equipment, market pricing pressures locally and from Washington state, a reduction in contracted 小蓝视频TFC growers/members, and significant impacts from a changing climate,” notes 小蓝视频 Tree Fruits.
It says attempts to “right size” the business were met with multiple attempts to block property sales, make board changes or change board governance. Those disruptions delayed property sales and equipment installations, reducing protection grower returns.
“The final tipping point in the already precarious financial position of 小蓝视频 Tree Fruits was the unexpected and significant crop reduction caused by unusually severe weather pattern in 2024. As a result, the 2024 crop saw a reduction in volume by 85-90% in cherries and all other stone fruit were reduced to zero due to those weather events.”
小蓝视频 Tree Fruits announced its closure, saying it did so to give growers the opportunity to find other avenues to pack and market this year’s harvest.
At the comeback hearing, 小蓝视频TFC will seek approval of a sale and investment solicitation process for the assets of 小蓝视频TFC, and for such further and other relief as may be necessary.
Court documents indicate that the cooperative was $50 million in debit to CI小蓝视频 and owned significant payment to members.
Premier David Eby, agriculture minister Pam Alexis and representatives from the tree fruit and cherry industries have a news conference scheduled for 11 a.m. in Penticton to update the work being done to support growers.
