The Canadian Imperial Bank of Canada (CIBC) has reportedly filed a demand for repayment under the Bankruptcy and Insolvency Act directed at 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 British Columbia Supreme Court on August 12, according to a statement from the cooperative.
“The decision to file for creditor protection stems from BCTFC’s current liquidity crisis,” the cooperative said in a statement (read the full statement here). “There are 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 BCTFC growers/members, and significant impacts from a changing climate.”
The cooperative has been struggling to “right size” its business through initiatives including an “unpopular” consolidation plan to modernize equipment and divest underutilized properties, the statement said.
“Unfortunately, that was met with multiple attempts to block property sales, make board changes, or change board governance,” which reduced grower returns for the 2023 and 2024 crops, the statement said.
“The final tipping point in the already precarious financial position of BC Tree Fruits was the unexpected and significant crop reduction caused by unusually severe weather patterns in 2024,” the cooperative said, which led it to announce its closure on July 26.
BCTFC is seeking approval of a sale and investment solicitation process for its assets.
