Good Natured packaging companies win approval for Brampton going-concern sale

Good Natured Products Industrial Canada LP and five related operating companies filed notices of intention to make a proposal on June 22, 2026, followed by their Brampton real estate holding company on July 10, as the sustainable-packaging group sought protection to complete a going-concern sale to Jones Healthcare Group.

Justice Steele extended the stay through September 5 on July 21. Justice W.D. Black subsequently approved the sale of substantially all operating assets used at the Brampton manufacturing business to Jones Healthcare Group – Thermoforming Inc., as assignee of Jones Healthcare Group Inc., as well as the sale of the related property at 5 Abacus Road to Jones.

The debtors manufacture plant-based and other sustainable packaging for food producers, restaurants, consumer-product companies and industrial processors. Good Natured Products Packaging Brampton LP operates the thermoforming and finished-packaging business in Brampton. Good Natured Products Industrial Canada LP processes resin into sheets and rolls at a facility in Ayr, Ontario, while Good Natured Products Packaging Canada LP provides logistics, warehousing and distribution services. The companies employed approximately 49 people when the proceedings began.

The debtors are successors to companies that entered CCAA protection in British Columbia in June 2024. A court-approved sale process contacted at least 165 parties and produced two final bids, leading to HUK 149 Limited’s acquisition of the business through a reverse vesting transaction approved in October 2024. The restructured business returned to profitability during the first quarter of 2026 before its liquidity deteriorated again.

The debtors reported net losses of approximately $8.4 million for the 15 months ended March 31, 2026. At filing, they owed approximately $31.2 million to secured creditors and approximately $7.9 million in unsecured trade debt. Secured claims included approximately $12.5 million owing to TD, $8.1 million to HUK 147 Limited, approximately $6.2 million to RBC, $3.6 million to Export Development Canada and approximately $900,000 to Wells Fargo.

The group attributed its financial difficulty to rising resin costs and supply shortages. Escalating hostilities involving Iran increased oil and resin prices, while larger market participants secured available supply. Good Natured was unable to fulfill some orders, reducing sales, receivables and availability under its Wells Fargo asset-based facility. A revised inventory appraisal and field examination further reduced the borrowing base. TD and RBC issued notices of intention to enforce security on June 5, and the debtors had been operating under full cash dominion since May 19.

The Jones transaction followed a targeted sale effort conducted between January 26 and June 22. The debtors contacted 13 prospective purchasers, obtained ten confidentiality agreements, hosted four site visits and received two letters of intent. Jones, the debtors’ largest customer, was the only party to submit a viable proposal for the operating business and supported operations during negotiations by placing orders, purchasing raw material and assisting with logistics. Jones expects to offer employment to at least 15 Brampton employees.

TDB Restructuring is the proposal trustee. Counsel includes Miller Thomson for the debtors, Dentons for Jones, Owen Bird for TD, and Norton Rose Fulbright for Wells Fargo.