Agricultural supplier Growers Supply is set to shut down operations across the Okanagan Valley by year-end, following the divestiture of BC Tree Fruits, its operating entity, amid bankruptcy proceedings. The co-operative, which halted operations earlier, is in the process of selling off BC Tree Fruits' assets. A source from Growers informed that the closures are expected to be finalized by December.
In response to the cooperative filing for creditor protection, Alvarez & Marsal was designated in August to oversee the sale processes of both BC Tree Fruits Cooperative and Growers Supply Company. A notable transaction includes the $9.5 million acquisition of Growers Supply's Kelowna property by Taz Holdings, sanctioned by the courts in October, alongside the liquidation of additional assets.
Despite BC Tree Fruits Cooperative's earlier closure, Growers Supply continued operations primarily to deplete its remaining stock, maintaining a presence in Kelowna, Vernon, Penticton, Oliver, and Creston. The workforce saw reductions post-August, with some employees transitioning to Alvarez & Marsal for asset liquidation, all of whom are poised to exit by December's end.
The departure of BC Tree Fruits and Growers Supply from the market is being addressed by other entities like TerraLink and Okanagan Fertilizer. The remaining BC Tree Fruits inventory, valued at about $5 million as of September, is anticipated to fetch between 45 to 55 percent of its worth.
Financially, BCTF owes approximately $3.7 million to 192 grower members for undistributed apple, cherry, and plum pool payments. Alvarez & Marsal's report mentions a proposal from the B.C. Investment Agriculture Foundation to settle these grower payments for the 2023 and 2024 fruit deliveries, assuming the role of an unsecured creditor in the bankruptcy case.
Source: Castanet