Leamington greenhouse future unclear as Lakeside Produce files for bankruptcy
Lakeside Produce Inc., which operates a largescale commercial greenhouse in Leamington employing hundreds of people, has filed for bankruptcy.
Documents made public through Ernst and Young, serving as insolvency trustee, show the company owing a total $187,889,241.97 in liabilities to 300 different creditors — with only $3,580,233 in assets.
Among the company’s debts, more than $100,000 owed to Cervini Farms, the parent company of the property where the Leamington greenhouse is based — and numerous uninsured claims levied by creditors located locally, across North America and even overseas.
CTV News reached out to Lakeside Produce but did not hear back Friday and Ernst and Young was not able to comment on what this might mean for the company’s future and that of its employees.
Richard Lee, executive director of Ontario Greenhouse Vegetable Growers (OGVG), wasn’t able to speak to the specific situation either but says inflation has hit producers as much as the average person.
“I do predict that the sector will continue to face challenges tied specifically to the inflationary pressures that are being felt globally,” says Lee.
“We were focusing on a post-pandemic recovery and the unique thing about this financial climate is that all prices increased across the board at the same time.”
Lee says he hopes farmers and producers will throw their support behind a private members bill brought to Parliament Hill last summer.
Bill C-280, sponsored by York—Simcoe MP Scot Davidson, would establish a deemed trust mechanism for fresh produce growers and sellers in Canada, ensuring payment in the case of a buyer bankruptcy.
Lee says current Canadian laws don’t provide protection to such businesses in the case of insolvency or bankruptcy.
“So most of those producers and sellers are left holding the bag,” he says.
That Bill had its first reading last June but hasn’t yet reached it’s second.
The first meeting of Lakeside Produce’s creditors will take place Thursday, Feb. 2 via conference call.
CTVNews.ca Top Stories
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
Boeing's financial woes continue, while families of crash victims urge U.S. to prosecute the company
Boeing said Wednesday that it lost US$355 million on falling revenue in the first quarter, another sign of the crisis gripping the aircraft manufacturer as it faces increasing scrutiny over the safety of its planes and accusations of shoddy work from a growing number of whistleblowers.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.