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Domaine le Cageot is threatened with closure

Domaine le Cageot is threatened with closure

Domaine Le Cageot de Jonquière, a leader in the agri-food sector in Saguenay-Lac-Saint-Jean, has filed a notice of intent to declare bankruptcy due to a debt of $3.7 million.

The origins of this religion go back to before the pandemic.

In 2019, Domaine le Cageot invested $2.5 million in new reception infrastructure, a VAT room and a processing centre. Part of the production will begin to be exported to Europe.

This momentum has been slowed by the pandemic, which has lasted more than two years.

Other pitfalls arose later. Most important: the suspension of the license for the artisanal production of wines and spirits for 60 days by the Régie des alcools, des Courses et des Jeux du Québec, from November 16 to January 15, i.e. in the middle of the holiday season. .

The default prevented it from paying creditors such as Investissement Québec, Canada Economic Development and other financial institutions.

“We now know that he deprived us of $500,000 in revenue,” says Pierre-Philippe Tremblay, the company's CEO. We were unable to repay our loans in January, February, March and April.”

You should know that since its liabilities are less than $5 million, Domaine Le Cageot cannot place itself under the protection of the Creditors Arrangement Act.

The trustee will evaluate the company. Until then, all options are on the table, including partnering with investors or selling directly.

“People have approached the area,” Mr. Tremblay admitted. There are also many who tell us they don't want to lose Le Cageot. We are open for another month, three months or six months, we don't know, but the goal is to ensure the sustainability of the company.

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Le Cageot has won numerous international awards over the years. Therefore, the quality of their products is certainly not in question.

“We are still hungry for business,” the CEO concluded.