A British Columbia company that was once at the forefront of the booming vegetable meat industry is closing shops and manufacturing plants as it struggles to survive.
Very Good Food Company, which operates the main brands The Very Good Butchers and The Very Good Cheese Co., is withdrawing from its leading store in Victoria and putting the opening of another leading store in Vancouver on a cutting block.
The company is also closing three manufacturing plants in Victoria, Vancouver and California, while consolidating production at its remaining facility in Vancouver.
Financial results for the first quarter, published last week, show that Very Good Food Company lost more than $ 15 million in cash and cash equivalents between December 31 and March 31, 2022, threatening the company’s resilience.
“Although the company has been successful in the past in obtaining debt and own financing, there is no guarantee that the company will be able to do so in the future,” said management in the quarterly update.
“The existence of these conditions indicates that there are significant uncertainties that may call into question the company’s ability to continue as a going concern,” the company said.
THE FOUNDERS LEAVE THE COMPANY
The Very Good Butchers rose from humble beginnings as a stand for “bean butchers” at a farmers market in Denman Island, British Columbia. The operation eventually moved to Victoria and the founders appeared successfully on the TV show Dragon’s Den.
The company began trading on the Canadian Stock Exchange in June 2020 and raised more than $ 4 million in an initial public offering, which led to a rise in its share price.
But founder Mitchell Scott was fired as the company’s chief executive in April, followed by the resignation of co-founder James Davison as director of research and development.
Weeks later, the corporation announced the appointment of a former Nestlé CEO as interim CEO on May 2 and revealed that its president and interim CFO had also resigned.
The company’s share price reached record lows after the publication of the quarterly results last week. Management says it expects to further reduce its workforce, streamline operations and sell off equipment as it reduces costs to the bone.
Very Good Food did not respond to CTV News’s requests for comment on staff closures and layoffs.
Interim CEO Matthew Hall said in a statement accompanying the quarterly report that the company is also cutting online sales as it shifts to its wholesale and food business in the United States.
“During the very short period of time I have been with the company, I have taken great strides in identifying problem areas and developing a strategy to get the company back on track,” Hall said in a statement on May 17. .
“My strategy focuses on stabilizing, properly sizing and optimizing the business,” he added. “While it will take some time for the financial results to catch up with the progress we are making, I am confident that we will begin to see major improvements in the coming quarters.
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