The board of FarmPure expects to have a restructuring plan in place by the end of this week, shareholders confirmed Feb. 11.
Rumours have swirled for weeks about the Regina-based company’s financial health. It has not met all of its payroll obligations, and chief executive officer Trenton Baisley’s contract was not renewed at the end of January.
Warren Kaeding of Churchbridge, Sask., said shareholders are working to save the company from within.
“We’re looking at a whole bunch of options right now,” he said.
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About 200 prairie pedigreed seed growers formed FarmPure in 2005 out of Quality Assured Seeds.
The company includes FarmPure Seeds, FarmPure Global, FarmPure Foods, FarmPure Beverages and FarmPure Financial.
Sources said efforts within the last year to establish FarmPure Foods’ Only Oats plant in Regina and buy the facilities and genetics of forage seed company SW Seeds were too much for the company to handle.
The beverage division recently put its gluten-free NuBru beer into Winnipeg area liquor stores to test response.
FarmPure Foods built a test kitchen that it intended to use to showcase products and host events.
Two groups of shareholders were working this week with Regina consultant Andre Lizee to try to salvage the company, perhaps by creating two companies.
Lizee had been involved in the proposed DMB Food Processors beef and pork slaughter and processing facility near Qu’Appelle, Sask., in 2003. The project failed after one of the major shareholders from Ireland died.
FarmPure board chair David Kohut of Souris, Man., referred questions to Lizee, but he was in a meeting Feb. 11 and unable to comment before Western Producer deadlines.
Kaeding said seeds division employees were still in the field earlier this week.
He said he was optimistic the company could be restructured and continue operating. Meetings were scheduled for Feb. 12 and 13.
Calls to FarmPure staff were not returned.
