Alberta-based Sunterra Group, with a portfolio of grocery stores and meat processing facilities, recently went through a court-approved for sale or investment process within its court-supervised restructuring proceedings under the Companies’ Creditors Arrangement Act (CCAA).
In April, the Court of Queen’s Bench granted the sale and investment solicitation process for the company with a portfolio of agriculture and food businesses in Alberta including a multi-generational pork production operation with more than 595,000 square feet of barn infrastructure on 1.150 acres of land across eight facilities and a premium grocery retailer operating seven “farm-to-fork” market locations.
Interested parties who wanted to pursue this opportunity were given a deadline of June 25 to submit a letter of intent to the sale advisor, KPMG Corporate Finance Inc. The next phase involves the assessment of those submissions.
FTI Consulting Canada Inc. is the court-appointed monitor.
In February Retail Insider reported that an Alberta judge ruled that Sunterra engaged in cheque kiting on what the court described as an “astonishing scale,” finding the company liable to U.S. agricultural lender Compeer Financial for approximately $35 million.
In a decision issued on January 27 by the Court of King’s Bench in Calgary, Justice Michael Lema also held Sunterra’s president personally responsible for the debt, marking a significant escalation in the legal and financial pressures facing the vertically integrated agri-food group, said the news story.
The ruling arrived as Sunterra continued to restructure under court supervision following months of financial strain, lender disputes, and operational disruption. While the decision focuses on conduct between Canadian and U.S. affiliates and lenders, it carries implications for the broader Sunterra group, including its premium Sunterra Market grocery stores across Alberta, said the story.
In his written decision, Justice Lema likened the financial practices at issue to a game of musical chairs where there are not enough seats when the music stops. He concluded that Sunterra’s Canadian entities fraudulently misrepresented the availability of funds behind cheques sent to the United States, inducing Compeer to continue honouring payments that were not backed by actual cash balances.
Founded in 1970 by the Price family, Sunterra traces its origins to Pig Improvement Canada, a hog-production business built on higher-standard farming practices. The company launched Sunterra Meats and Sunterra Market in 1990, the latter debuting in downtown Calgary’s Bankers Hall with a European-style market concept that emphasized fresh food, in-house production, and premium positioning.
In 2025, Sunterra filed a Notice of Intention (NOI) to make a proposal under the Bankruptcy and Insolvency Act (BIA) and Harris & Partners was appointed as Proposal Trustee.
Court documents indicated the company had 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.”
In April 2025, Sunterra obtained protection under CCAA.
On its website, Sunterra for its market lists five Calgary locations, one in Edmonton and one in Red Deer. It also states that the Commerce Place location on Jasper Avenue in Edmonton is permanently closed.
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