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 our community."
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 operate.
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 of JSP.
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.
For further information:
Contact: Gord Haugh 416-347-0298