Canada’s Joriki Files for Creditor Protection Amid Financial and Regulatory Challenges

Canada 09.01.2025

Source: DairyNews.today

Toronto-based co-manufacturer Joriki, which produces plant-based milks for Danone and Walmart in Canada, has filed for creditor protection, citing financial difficulties. Documents posted by Alvarez & Marsal, the proposed trustees, reveal that Joriki submitted a notice of intention (NOI) to the Office of the Superintendent of Bankruptcy Canada in late December.

Canada’s Joriki Files for Creditor Protection Amid Financial and Regulatory Challenges

In a statement issued on January 3, Alvarez & Marsal clarified that Joriki is “not bankrupt” and is using the NOI process to restructure its financial affairs under creditor and court supervision. The move aims to give the company “breathing room” to explore strategic alternatives.

Mounting Debts and Creditor Implications

According to the filing, Joriki owes approximately C$203 million ($142 million) to hundreds of creditors. These include major suppliers such as Ingredion, Tate & Lyle Solutions, and Tetra Pak, alongside institutional creditors like the Canadian Revenue Agency and the Bank of Nova Scotia.

Regulatory Setback and Listeria Outbreak

Joriki’s financial struggles come on the heels of a regulatory blow. In October, the Canadian Food Inspection Agency (CFIA) concluded an investigation into a listeria outbreak linked to one of Joriki’s production lines in Pickering, Ontario.

The CFIA found that Joriki failed to follow proper environmental swabbing and product testing protocols, contributing to the outbreak. While the agency could not pinpoint the source of contamination, it traced the issue to a production line dedicated to manufacturing plant-based milks for Danone’s Silk brand and Walmart’s Great Value brand.

The outbreak, which began in June, led to a recall of 15 Silk products and three Great Value almond-based milks. Tragically, the outbreak resulted in three deaths.

What’s Next for Joriki?

The NOI filing marks a critical juncture for Joriki as it navigates financial restructuring and works to rebuild its reputation following the listeria crisis. Alvarez & Marsal stated that the company is evaluating strategic alternatives to ensure long-term viability.

Joriki declined to comment when approached by Just Food, but the situation is being closely monitored by industry stakeholders and regulators. The restructuring process will likely shape the future of the company’s operations and its partnerships with major clients like Danone and Walmart.