The U.S. affiliate of Connors Bros. Clover Leaf Seafoods has filed for bankruptcy and put itself up for sale.
Bumble Bee Foods said Thursday it had entered into a sale agreement with Taiwanese-based FCF Fishery for an estimated $925 million.
Connors Bros. has operations in Blacks Harbour and also has an office in Saint John.
In a statement, Bumble Bee said the move will help reduce its debt burden caused by “recent and significant legal challenges.”
“It’s been a challenging time for our company but today’s actions allow us to move forward with minimal disruption to our day-to-day operations,” said Jan Tharp, president and CEO of Bumble Bee, in a statement.
“It is our clear intent that all U.S. and Canadian operations continue uninterrupted. Employees will get paid, our customer partners can count on us to continue delivering outstanding brands and services, and vendors will be paid in the ordinary course of business.”
Connors Bros. Clover Leaf Seafoods will be initiating proceedings under the Companies’ Creditors Arrangement Act. The company intends to seek approval of the appointment of Alvarez & Marsal Canada Inc. to oversee the proceedings.
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