Domaine le Cageot is threatened with closure

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

The genesis of this loan dates back to before the pandemic.

In 2019, Domaine Le Cajiot invested $2.5 million in new reception infrastructure, a wet room and a processing center. Part of the production will begin to be exported to Europe.

This momentum has slowed down due to the pandemic which lasted for more than 2 years.

Then other complications arose. Most notable: the suspension of its authorization by the Régie des alcohols, des courses et des jeux du Québec for the artisanal production of wine and alcoholic beverages for 60 days from November 16 to January 15, the middle of the holiday season.

A shortage that prevented lenders such as Investment Quebec, Canada Economic Development and other financial institutions from repaying.

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

Because its liabilities are less than $5 million, you should know that Domaine Le Cageot is not covered by the Creditors' Arrangement Act.

The trustee conducts the valuation of the company. Until then, all options are on the table, including a partnership with investors or an outright sale.

“People from the nearby area,” Mr. Tremblay agreed. There were also many who told us they did not want to lose Le Cagot. We don't know whether we will be open for another month, three months or six months, but the goal is to ensure the stability of the company.

Le Cageot has won many international awards over the years. So, it is definitely not in question the quality of its products.

“We still have a thirst for work,” concluded the CEO.