The company at the centre of the Fairy Creek logging protests on Vancouver Island several years ago appears to be in trouble.
The B.C.-based company Teal Jones is bleeding money and its many employees, are now facing an uncertain future.
On Thursday, Teal Jones filed a petition for creditor protection to the B.C. Supreme Court, revealing how hard it has become to balance the books.
“…the petitioners began facing significant liquidity challenges in 2023 due to external market factors and can no longer continue to meet their obligations as they become due,” the petition said.
B.C.’s Minister of Forests Bruce Ralston said he is watching the unfolding situation.
“Teal Jones is a major and important forestry company in B.C. and it also has operations in several American states,” Ralston told Global News. “The purpose of the court application is to hold off the creditor actions until they can readjust some of their internal revenue sources.”
A B.C. business analyst agrees that the company is trying hard to keep up with the costs of doing business.
“I think the big deal is they’re going to have (financing) getting renewed at higher rates than what they had before. Their labour costs, other input costs have all gone up,” business analyst Mike Campbell said.
The company dealt with a significant challenge in the past when environmental protesters caused disruptions to its logging operations near the Fairy Creek watershed.
As part of the restructuring plan, stated in the court petition, Teal Jones is proposing to sell one of its mills in the U.S. and some forest land in Haida Gwaii.
It is unclear how the sales will affect B.C. foresters and woodworkers.
Global News has reached out to Teal Jones for comment.
The company’s next court date has been scheduled for May 3.
Comments