2023-08-16 11:26:58
After temporarily laying off 235 employees, Pharmalab, Ideal Protein and Laboratories COP are sheltering themselves from their creditors.
• Read also: Pharmalab temporarily lays off 170 employees in Lévis
In a statement, Ideal Protein says an order under the Companies’ Creditors Arrangement Act (CCAA) has been issued against the companies granting certain protections.
The company will restructure and openly expresses its desire to acquire a potential buyer, according to the company’s statement released Monday.
The Superior Court of Quebec ratified the selection of RC Benson Consulting as responsible for guiding the company’s reorganization process, and appointed the firm Ernst & Young (EY) to oversee activities under the legislation.
EY believes that the request for a stay under the CCAA is necessary and appropriate in the circumstances.
Diane Tremblay
Financial setbacks
The documents presented in court on Monday expose the collective’s financial difficulties. In 2017, the company recorded a total gain of $75.9 million. Five years later, that performance had declined by 87%, and Ideal Protein was seeing net profits now down to $10.2 million.
The first six months of 2023 have been devastating for the company which suffered a net loss of $10.5 million.
The return from vacation on Monday for some 170 workers at the Pharmalab pharmaceutical products plant in Lévis was difficult.
Waited by security agents hired to control the comings and goings at 8750, boulevard Guillaume-Couture, the employees who came to collect some personal items were refused passage.
Diane Tremblay
Recall that the factory was a manufacturing site for Ideal Protein products used for weight loss.
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