FORT ERIE, ON, Feb. 9, 2012 /CNW/ - Jarvis Street Pharma (JSP) today
filed a Notice of Intention to Make a Proposal to restructure under the
Bankruptcy and Insolvency Act (BIA).
"We have met with our employees and have informed our union, the
International Association of Machinists and Aerospace Workers (IAMAW)",
said Ephriam Kandelshein, President of JSP.
"This filing does not mean that JSP is going out of business. What it
does do, is allow us the time and financial flexibility to find a way
to protect both the business and the many jobs that are so important to
JSP was formerly part of a much larger company that was sold to a buyer
who did not want to retain the Fort Erie operation as part of the
transaction. Rather than abandon the operation and the jobs, the name
was changed to Jarvis Street Pharma and the business continued to
However, it was clear to the owners, the very supportive union, and the
Town of Fort Erie that as the left behind orphan of a buyout, JSP would
need inventive solutions to survive. With the Union and the Fort Erie
Economic Development and Tourism Corporation (FE:EDTC) taking the lead,
a Task Force was formed. Deloitte was engaged to provide an analysis
and exploration of the long term options, opportunities and viability
Given the in-depth examination of the company and the proprietary
information it contains, making the report public could harm JSP's
ability going forward. However, Deloitte did suggest a number of
options, including shutting the business and selling the assets. It
was decided that the option taken today provides the most protection
for the workers and the company.
"We are confident that the provisions of the BIA will allow us to
envision a healthy future for JSP, our very skilled workforce and the
economic development that the company contributes to the Fort Erie
area," said Mr. Kandelshein.
SOURCE MNP LLP
For further information:
Contact: Gord Haugh 416-347-0298