The Supreme Court on Wednesday morning approved the sale of the assets of Pâtisserie Gaudet in Acton Vale, Montérégie, to American giant Table Talk Pies, more than three months after placing it under the protection of the Creditor Settlement Act.
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The company, which specializes in the production of cakes and tarts, closed its doors at the beginning of August due to a bankruptcy of more than 23 million dollars and placed itself under the protection of the creditor composition law.
Pâtisserie Gaudet employed around 90 people at the time it closed.
The value of the assets including the industrial building and production equipment is approximately $5 million.
The main secured creditors are TD Bank for $1.6 million and Investissement Québec with a claim of $7.5 million.
Table Talk Pies is a nearly 100-year-old company that was founded in 1924 in Worcester, Massachusetts.
Due to the consequences of the pandemic, inflation, failures in supply chains and scarcity of resources, this large bakery ran into financial difficulties in 2021 and its production fell by almost 80%.
The company had been bailed out by new investors, including a financial tycoon, Cliff Rucker, who also owns America’s East Coast ice hockey team, the Worcester Railers.
Table Talk pies specializes in making cakes, among other things. With a team of more than 300 employees, the company sells approximately 250 million cakes and tarts in the United States, Mexico and Canada.
Pâtisserie Gaudet and Table Talk Pies have worked together in the past, with the two companies acting as primary suppliers to Walmart.
The transaction is expected to close by Friday. The Trustee and Registrar, who approved the transaction, affirm that the American company intends to resume manufacturing activities at Acton Vale and that it has no intention of dismantling the equipment for shipment to other manufacturing sites it owns.