Cash crunch puts Surrey’s Teal-Jones Group into court protection from creditors

By Derrick Penner
Vancouver Sun
April 26, 2024
Category: Business & Politics
Region: Canada, United States

Teal-Jones Group, the multi-generational B.C. forestry firm with three mills and some 400 employees in the Lower Mainland, filed for court protection from its creditors Wednesday as dwindling revenues left it without the cash to pay its bills. B.C. Supreme Court Justice Gordon Weatherill granted Teal-Jones a stay of insolvency proceedings, giving the company a chance to raise the cash it needs, including through the sale of assets such as land holdings on Haida Gwaii. Historically, Teal-Jones had been able to run profitable operations and reinvest those profits in the business but faced a growing cash crunch through 2023, company vice-president Gerrie Kotze said in an affidavit to Teal Jones’s court petition. …Teal-Jones was also the logging company at the centre of old growth logging protests at Fairy Creek on Vancouver Island, which the company said cost it $40 million. …Its U.S. holdings now consist of operations in Sumas, Wash., Virginia, Oklahoma, Mississippi and its 57% stake in the new mill under construction in Louisiana, which Teal-Jones has put up for sale as part of its court proceedings.

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