GFI winding down business operations

GFI winding down business operations
May 16, 2024

The company made the announcement on May 7

By Diego Flammini
Staff Writer

Global Food and Ingredients (GFI) is ceasing operations.

The company announced it would begin an “orderly wind down” of its business operations in a May 7 release.

The company has between 51 and 200 employees, its LinkedIn page says.

The Toronto-headquartered company purchased peas, lentils, chickpeas, and other crops from farmers, and shipped products to 37 global markets.

It also had four grain elevators in Western Canada – in Lajord, Sedley and Zealandia, Sask., and in Bowden, Alta.

In its May 7 statement, GFI listed multiple reasons for its decision.

“The wind-down is a result of recent macro-economic events, which have caused GFI to experience challenges in purchasing adequate supplies of raw material inputs for its processing assets, which has resulted, and is expected to continue to, result in a material decline in the Company’s sales and gross profit until new raw material supply becomes available from the fall 2024 Canadian harvest,” the company’s statement says.

These factors make it “near impossible” for GFI to service its debts. And after working with financial advisors, a winddown is the most appropriate course of action, the statement adds.

On May 8, GFI announced it received communication from lenders demanding full payment of outstanding debt balances.

These debts total more than $21 million based on the numbers provided in the May 8 document.

The Canadian Grain Commission is appealing to any farmers who did business with GFI to contact the commission.

As of May 16, the Canadian Grain Commission lists GFI’s four Western Canadian facilities under the “licenses no longer in effect” category.

“The company’s grain dealer licence, 3 primary elevator licences and 2 process elevator licences have been revoked,” the CGC said in a May 16 notice. “If this company owes you money for grain deliveries, contact our Safeguards for Grain Farmers Program immediately. If you do business with this company on or after May 16, 2024, you will not be protected by security under the Canada Grain Act.”

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