Bankrupt Glovertown crab plant has new ownership, and town officials are hopeful

A crab plant in Glovertown that ran into financial trouble in recent years is under new ownership — and plans to operate the plant this season hinge on a quick approval from the provincial government to grant a new processing licence.

Terra Vista Limited has been a staple in Glovertown's business community for decades, and was operated by the Oram family prior to a change of ownership.

The new owners were hit hard by a collapse in the crab market in 2022, and were unable to recover. So one of Terra Vista's secured creditors, seafood giant Ocean Choice International, has taken over the assets of the Bonavista Bay plant.

Ocean Choice has partnered with a seafood harvester from Prince Edward Island named Leo Dorgan to form a joint venture called 16771408 Canada Inc.

Ocean Choice and its partner took over the plant after Terra Vista breached various mortgages and loan agreements, said Ocean Choice co-owner and president Blaine Sullivan.

"They were headed for bankruptcy and we were a creditor, so we acquired the assets for our debt," Sullivan told CBC News.

65 seasonal jobs in the balance

The plant operated last season, employing up to 65 people. It typically processes up to 1.5 million pounds of crab annually, which makes it one of the smaller plants in the province. In previous years, much of the crab processed at the Terra Vista plant was imported from Prince Edward Island, and supplied by harvesters like Dorgan.

"We certainly look forward to operating with [Dorgan] and doing what we can to ensure that that operation works great," said Sullivan.

Sullivan said the new owners have secured a reliable source of raw material for the upcoming harvest, with a blend of crab from the Maritimes and Newfoundland and Labrador.

But in order to reactivate the plant, the new owners need the provincial fisheries department to issue a new processing licence. The application process is underway, and the clock is ticking, said Sullivan

"We're really hoping to hear [this] week for sure in order for us to be able to continue the operation," he said.

"The bankruptcy and the transfer of assets is really within a few weeks of the season, so it really would be within the minister's discretion. So we certainly would ask him to review that, and we have asked the government to review it on an urgent basis, given the season is around the corner." 

Fisheries Minister Gerry Byrne was not available for an interview on Monday.

Ocean Choice could easily absorb the volume of crab normally processed in Glovertown at its existing plants in Triton, Bonavista and St. Lawrence, but Sullivan said he wants to preserve the jobs in Glovertown, and sees a future in the Terra Vista operation.

"The facility is in quite good shape. We've reviewed it and went through it and it's actually ready to run, as is," said Sullivan.

Sullivan praised the plant's workforce and the local management team, and said the plant has a good reputation for high quality crab.

Glovertown is a town of just under 2,000 residents, according to Statistics Canada. It's located 60 kilometres east of Gander.

Mayor Doug Churchill said the plant is important to the town's economy, and he hopes to learn more about the new owners' plans for the plant during a telephone call on Tuesday.

"We're hoping that he's going to tell us that [Ocean Choice] is here for the long haul. That's really what we need," said Churchill.

"We certainly look forward to operating with him and doing what we can to ensure that that operation works great."

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