The Quebec Parmentier company, a major player in the Quebec potato industry, is facing serious financial problems and has just received protection under the Companies’ Creditors Arrangement Act (CCAA).
Founded just over ten years ago and backed by such well-known brands as Propur, Légupro and Mamazells, the private company specializes in the distribution of potato crops from several dozen producers in Quebec.
However, after years of growth, largely due to a series of recent acquisitions, the company of almost 90 employees gradually became insolvent and faced significant liquidity problems that made it impossible to pay off its debts.
According to the person named in the file, management has made some efforts to remedy the situation. In winter 2023, the subsidiaries Marketing SEQ, Gessam, Légupro and Propur were liquidated. Sembec production was also sold.
But it was too little, too late; For the 22-month period ended June 30, the company reported a cumulative loss of $3.5 million.
According to documents submitted to the Supreme Court, Quebec Parmentier had accumulated $78.4 million in debts to 180 companies and institutions as of June 30.
Excluding debt related to the line of credit and trade accounts payable, the Company faces debts of $55.5 million, including $51.7 million owed to six secured creditors.
Of this, Farm Credit Canada has a deficit of $20.4 million and Caisse Desjardins de la Rive-Nord du Saguenay faces unpaid bills totaling $13.8 million.
Among the most vulnerable unsecured creditors are Napierveau Crédit-Bail of Saint-Hyacinthe with debts of $575,283, Ferme Yvon Boyer of Saint-Michel with a shortfall of $522,171 and Les Jardins from Saguenay to Jonquière with delinquencies $333,094 in debt accounts.
When he arrived at his office, it was not possible to speak with Quebec Parmentier President and CEO Kévin Rivard. However, in a statement received electronically, management explains that it is continuing its restructuring efforts while continuing its activities.
The agenda for the coming weeks would include the liquidation of two farms in Témiscamingue and Outaouais that were purchased in recent years. A settlement plan should also be presented to the creditors.
“A support plan will be introduced to support the employees involved […]it is written [et l’entreprise] intends to do everything possible to limit the impact on all affected suppliers of agricultural inputs.
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