Joriki, a Canadian company that processed plant-based milk linked to a fatal listeria outbreak, is seeking to sell its facilities and liquidate its operations. The company's revenue plummeted after several plant-based milks it manufactured were recalled. The Canadian Food Inspection Agency identified Joriki's Pickering, Ont., facility as the source of the outbreak, which sickened at least 20 people and resulted in three deaths.
A Canadian company at the center of a deadly listeria outbreak is seeking to sell two of its facilities as it liquidates its operations. Toronto-based Joriki, which processed plant-based milk linked to the outbreak, filed for court protection under the Companies’ Creditors Arrangement Act last week. The company's revenue plummeted following the recall of several plant-based milks it manufactured under the Silk and Great Value brands.
The Canadian Food Inspection Agency traced the listeria outbreak to Joriki's Pickering, Ont., facility, which sickened at least 20 people and led to three deaths between August 2023 and July 2024. After the CFIA publicly identified Joriki's Pickering plant as the source, key customers suspended production at the facility, leading to its idling, according to chief financial officer Michael Devon in an affidavit. Customers also paused production at the Delta, B.C., location. Furthermore, Joriki's largest customer at the Toronto facility terminated their contract in November. By the end of 2024, Joriki ceased business operations, laid off almost all its employees, and was unable to pay severance.Prior to the shutdown, Joriki employed approximately 565 full-time and temporary workers, with about 337 working for Joriki Canada. Devon stated that Joriki has potential buyers for its Toronto and Delta facilities, noting that some existing customers rely on these locations. Joriki, founded in 1991 and expanding to B.C. in 2010, also embarked on a U.S. production facility in 2022. However, challenges with the expansion into the U.S. made the company more susceptible to the financial impact of the outbreak. Delays and cost overruns at its new Pittston, Pa., site led to significant losses, and Joriki struggled to generate profits in recent years primarily due to the new facility. The company had a turnaround plan for the Pittston plant with additional financing, but the recall derailed these efforts. Joriki had to focus on the recall's fallout and couldn't make planned capital improvements to the Pittston plant, leading to continued losses. Devon noted that Joriki's U.S. subsidiary filed for Chapter 7 bankruptcy this month
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