New Brunswick seafood co-op enters CCAA after $8.5 million loss

Island Fisherman’s Co-operative Association Limited, a Lamèque, New Brunswick seafood processor founded in 1940, obtained protection under the Companies’ Creditors Arrangement Act effective August 12, 2026, with estimated liabilities of approximately $24.9 million, excluding approximately US$14.1 million owed to seafood broker WhiteCap International Seafood Exporters Inc. for inventory advances expected to be offset against proceeds from product held by WhiteCap. Business Development Bank of Canada is owed approximately $7.9 million, while unsecured creditors include government funding agencies, seafood suppliers, trade creditors and the co-operative’s members.

Island Fisherman’s processes lobster, snow crab and rock crab from its facility in Lamèque and sells to customers in Canada, the United States, Europe and Asia, primarily through WhiteCap, in which it owns a 5% interest. It has 91 active members, 11 year-round employees and up to approximately 360 seasonal workers. The company stopped processing Nordic shrimp in 2024 after reduced quotas made the business unprofitable.

The co-operative attributes its financial difficulties to the collapse of the Nordic shrimp fishery, rising seafood, transportation, storage, packaging and fuel costs, pricing and demand volatility, reduced deliveries of raw product, tariff uncertainty and a lack of available credit. It recorded losses of approximately $8.5 million over the 15 months ended December 31, 2025. Island Fisherman’s also sold its interest in Lamèque Offshore Fishing Ltd. for approximately $24 million in 2024, using approximately $18 million to repay liabilities and fund operating losses and the balance as working capital. Those proceeds have been exhausted.

At filing, Island Fisherman’s owed approximately $2.9 million to snow crab suppliers, $74,000 to lobster suppliers and $2.2 million to other vendors. Other unsecured obligations include approximately $4.4 million to the Atlantic Fisheries Fund, $2.7 million to the Atlantic Canada Opportunities Agency and $4.7 million in members’ loans. BDC originally advanced $11.6 million under a March 2021 loan agreement. The company was current on the facility at filing.

The CCAA proceeding is intended to stabilize the business and develop a restructuring solution. EY is the monitor. Counsel includes Chiasson & Roy for Island Fisherman’s and McInnes Cooper for the monitor.