BY ANDY WALKER
When it opened just three short months ago, it was hailed as a success story for the aboriginal community.
It first glance, it seemed the praise was justified.
Minigoo Fisheries on Lennox Island seemed to be built on a solid business model. It was owned by the band council and financed entirely by the private sector. Its board of directors was a combination of leaders in the community and non-aboriginals with wide experience in the fishery, marketing and finance.
It was buying product form both aboriginal and non-aboriginal fishermen and its presence as another buyer on the wharf was welcome by industry. The building was state-of-the art and had the potential to become a major employer in the community. Company officials attended a number of trade shows lining up markets before they even handled their first lobster.
Now that success story has turned sour. The CEO has resigned, the workers were laid off in mid-July and the directors have asked the court for 90- day protection from creditors in order to try and recapitalize the operation. (SEE STORIES ON PAGE 7).
Exactly how much debt the company is facing is yet to be revealed. That probably won’t happen until when, and if, the matter goes before the courts.
There is very rarely one cause for a business downturn. Speculation in the community is pinning the blame on a host of factors, ranging from cost overruns during the building phase to an inexperienced workforce.
It certainly didn’t help that the business opened at a time when fishermen were receiving some of the lowest prices since the depression and the loonie was at virtual parity with the American greenback – never a good scenario for exporters.
Even if the company is able to refinance and process fall lobsters, the major question lies in what will happen next year?
Certainly, if a company like this that appeared to have all of its ducks in order can’t survive in the marketplace, it may well be a long time before the province sees any additional capacity.
As well, there is the question of developing processing capacity for new and emerging species.
On another unrelated note, Ed Frenette will certainly be missed as the executive director of the P. E.I. Fishermen’s Association. He has been a strong voice for the industry and represented the association on a wide variety of committees. That level of expertise just doesn’t happen overnight and will be difficult to replace.
Frenette will remain involved with the industry in his new post as commercial fisheries liaison with the Micmac Confederacy and we wish him well in that position. He has always been a pleasure to deal with. There is no word yet on when a replacement might be hired.
