Alberta-based Sunterra Quality Food Markets has filed a Notice of Intention (NOI) to make a proposal under the Bankruptcy and Insolvency Act (BIA) and Harris & Partners has been appointed as Proposal Trustee.
Court documents indicate the company has more than 200 creditors with liabilities of $18.9 million
“Please be advised that the Company is not bankrupt and has availed itself to a procedure whereby an insolvent person, with creditor and Court approval, restructures its financial affairs,” said court documents. “The role of the Proposal Trustee in this matter is to monitor the cash flow of the Company during the restructuring process, to assist with the development of the Proposal, and to liaise with creditors, who will ultimately make the decision regarding the Proposal.
“Pursuant to section 69(1) of the BIA, the effect of the NOI is an automatic stay of proceedings against all creditors from commencing any actions against the Company. The Company is required to file a Proposal within 30 days from the date of filing of the NOI unless the Company is granted an extension from the Court for a period not exceeding 45 days for any individual extension and not exceeding in the aggregate 5 months after the expiry of the initial 30-day period.
“The amounts indicated on the attached list of creditors were estimated by the Company as at the date of filing the NOI, and as such, may not be the correct amount of your claim. We advise that currently there is no requirement for any creditor to file a proof of claim with either the Company or the Proposal Trustee.”
On March 24, Sunterra Farms Ltd., Sunterra Food Corporation, Sunterra Quality Food Markets Inc., Sunwold Farms Limited and Trochu Meat Processors Ltd. each filed a Notice of Intention to Make a Proposal under section 50.4(1) of the Bankruptcy and Insolvency Act and Harris & Partners consented to act as the Proposal Trustee.
According to the Sunterra Market website, the company has five market locations in Calgary, two market locations in Edmonton, and one location in Red Deer.
“With land that had been in their family for decades and a deep-rooted passion for excellence, Stan and Flo Price planted the seeds that would become Sunterra over 50 years ago,” says the company on its website. “What grew into a vertically integrated group of food companies started small on their family farm, raising superior hogs in Acme, Alberta. The Prices’ family values of land stewardship, humane animal treatment and community loyalty remain fundamental to the Sunterra brand today.
“This, paired with their passion for bringing a better, high quality food experience to all Albertans, ultimately allowed Sunterra Market to become what it is today. And the name? It was born from the very things that helped cultivate their business — the sun and the earth.
“Today, the Sunterra Group is run by the Price children, grandchildren and a family of 1,200+ team members who uphold their passion for innovation and legacy of quality. Modeled after European markets, Sunterra Market redefines grocery shopping by encouraging customers to shop fresh, local and often, all while enjoying our sampling stations and complimentary walkout service. We are farmers, butchers, chefs, bakers and so much more; but above all else, we are passionate food experts who take great pride in strengthening our community through fresh, delicious food. Our team wholeheartedly cares about quality, sustainability and supporting our local partners. After all, food brings people together, and we value being a part of those special moments.
“But our eight market locations across Alberta are only one chapter of the Sunterra story. With our distinctive vertical integration structure, we manage every aspect of what we do. All the pork you’ll find in our meat departments and chef prepared meals is from our very own Sunterra Farms. It is processed in Trochu, Alberta where the highest standard food safety and processing techniques are used to deliver meat of superior quality. The pork is then sold fresh in our markets or turned into delectable cooked and cured meat products at one of our other facilities; Soleterra d’Italia (meaning Sunterra in Italian) crafts Italian-style hams, salamis and cured meats while Sunterra Meats creates our signature Alberta-inspired smoked hams, sausages and bacon. We have also strengthened our roots in agriculture by growing fresh, ripe-picked produce at Sunterra Greenhouse.”
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Sunterra’s financial troubles are surprising, given its strong vertical integration and emphasis on quality. While the NOI isn’t bankruptcy, it raises concerns about the sustainability of premium food markets in today’s economy. Are rising costs and shifting consumer habits making this business model unsustainable? Or is this just a restructuring move to stay competitive? Would love to hear others’ thoughts.
It’s also an opportunity to renegotiate or terminate leases.
I’m curious which stores are top performers, and which are struggling the most. And I’m curious how the two downtown locations have done following Covid/work from home.
I helped open the Sunterra Market in Edmonton in 1995 and spent 4 years as a Chef and later assistant manager.
Watched them grow consistently over those years.
Not surprising , This definitely a sign of our poor economy and ten years of Liberal rule and investment stagnation due to high regulations
Consumers are bridled with high taxes, housing and record inflation. The result is choosing between a quality , service oriented grocery experience or a big grocery box store with cheap prices and lower quality.
The surprising element is the wisdom of the Price Family and not reacting to changing markets sooner. Everybody hoping Alberta will get its break and good times are definitely ahead. The road is long and slow for the food industry and directly connected to our energy industry