Receiver taking bids on Red Zoo assets - The Packer

Receiver taking bids on Red Zoo assets

06/24/2009 06:02:15 PM
Bob Luder

Red Zoo Marketing, the Ruthven, Ontario greenhouse grower that closed in early May is in receivership and selling its assets.

Court-appointed receiver Deloitte & Touche Inc., is taking bids on Red Zoo assets, including trademarks, until July 15. The company shipped its last load of tomatoes May 1.

Deloitte & Touche is based in New York, and the company’s Canadian headquarters in Windsor, Ontario is overseeing the liquidation of Red Zoo assets.

Deloitte & Touche is not actively seeking offers for the land owned by Red Zoo, but is interested in taking proposals for the purchase of its title, machinery, equipment and inventory. A listing of all inventory is available here.

“The receiver’s job is to realize the maximum value of the assets,” said Jacqui d’Eon, chief communications officer for Deloitte & Touche. “Our first intent is to sell the entity as a whole. The second option is to sell off the pieces.”

Red Zoo co-owner and president Jay Colasanti was unavailable for comment; the company’s phones are still operating, but a call was not returned.

D’Eon said the receiver takes bids, evaluates which are best, and then presents recommendations to the Canadian bankruptcy court for approval.

An open viewing of Red Zoo’s assets and remaining inventory is scheduled on July 7. Other viewings were June 19 and June 25, according to Deloitte & Touche.

According to Deloitte & Touche, Red Zoo owes the Bank of Nova Scotia $3.6 million; the receiver lists four other major creditors, but amounts owed to them aren’t listed.

The total known amount owed to all unsecured creditors is $2.6 million.

Because produce-industry creditors to the Canadian company aren’t protected by the Perishable Agricultural Commodities Act, it’s unknown how many U.S. or Canadian companies in the industry are owed money by Red Zoo.

In mid-May, the Fruit & Vegetable Dispute Resolution Corp. terminated the membership of Red Zoo for suspending payment of debts.



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