Bumble Bee Foods Canadian division Clover Leaf Holdings has filed for bankruptcy protection at the Ontario Superior Court of Justice.
It follows a similar move by its parent group in the US.
The company initiated proceedings on Nov. 22, a development notified by insolvency trustees Alvarez and Marsal five days later.
Clover Leaf’s move came just a day after beleaguered US canned tuna giant Bumble Bee filed for Chapter 11 Bankruptcy protection in a Delaware bankruptcy court.
The application by Clover Leaf covers a number of businesses including Clover Leaf Holdings Company, Connors Bros, Clover Leaf Seafoods Company, KCR Fisheries Ltd, 6162410 Canada Limited, Connors Bros Holding Company and Connor Bros. Seafood Company.
Among the company’s main creditors are a number of Thailand based companies including ISA to which Clover Leaf owes nearly CAD 2.2 million (€1.5 million/$1.7 million).
Clover Leaf and its affiliates also owe hundreds of thousands of Canadian dollars each to Pataya Food Industries, RS Cannery and Thai Union including more than CAD108,000 (€73,287/$81,217) to its Polish operations.
In the United States, Bumble Bee announced it filed for bankruptcy in order to enter an "asset purchase agreement" with Taiwan-based FCF Co Ltd, which has agreed to acquire the company’s assets for approximately $925 million (€835.5 million).
Former Bumble Bee CEO Chris Lischewski is in court fighting charges he led a price-fixing ring in the US canned seafood market. Bumble Bee cited the ongoing suits against the group as one of the reasons behind its bankruptcy.
