Plant-milk packager tied to listeria outbreak plans to file for creditor protection

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This article was published 03/01/2025 (325 days ago), so information in it may no longer be current.

The Canadian beverage packaging company that processed plant-based milk linked to a listeria outbreak has filed for creditor protection as it plans a restructure of the business.

Documents from proposal trustees posted on their website Friday show Joriki Inc. filed a notice of intention with the Office of the Superintendent of Bankruptcy Canada in Toronto on Dec. 31.

Insolvent companies use this mechanism to avoid liquidation and get enough breathing room from creditors so they can keep their business afloat.

The documents include a notice to creditors listing more than 100 companies that collectively have claims totalling more than $200 million.

Joriki has three facilities in Canada and one in the U.S., which is owned by a subsidiary.

The Canadian Food Inspection Agency deemed a production line at Joriki’s facility in Pickering, Ont., used by plant-milk manufacturer Danone Canada, the source of a listeria outbreak that led to three deaths between August 2023 and July 2024.

Proposal trustee Alvarez & Marsal Canada states in the letter to creditors that Joriki is not bankrupt but is hoping to “create a stabilized environment” and give the company “breathing room while it evaluates its strategic alternatives.”

Neither the trustees nor company representatives responded to requests for comment.

The listeria outbreak that infected at least 20 people in Ontario, Quebec, Nova Scotia and Alberta was not mentioned in the notice.

Health Minister Mark Holland said at an October press conference that Joriki was not adhering to Health Canada’s policies on listeria prevention, including properly conducting environmental swabbing and finished-product testing, prior to the national recall of several Silk and Great Value plant-based milk products on July 8.

Among the creditors listed are dozens of companies, ranging from packaging services to utilities providers to the Canada Revenue Agency. More than $174 million is owed to the Bank of Nova Scotia.

Danone was also included in the list of creditors, with claims of more than $200,000.

A spokesperson for Danone Canada said production from the affected facility was moved elsewhere in its North American network.

“We do not anticipate any disruption in supply in the short term and will work closely with our partners to ensure Canadians can continue to enjoy Silk refrigerated beverages,” Jennifer Vincent, head of communications, said in a statement.

Joriki, Danone and Walmart Canada are named in a class-action lawsuit launched in Quebec by LPC Avocats over the listeria outbreak. The lawsuit has not yet been certified by a judge.

This report by The Canadian Press was first published Jan. 3, 2025.

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