View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
March 18, 2010

CANADA: Planet Organic sells vitamin, Healthy’s units

Planet Organic has announced the sale of its vitamin manufacturing business and six of its Healthy's retail locations in order to reduce debt.

Planet Organic has announced the sale of its vitamin manufacturing business and six of its Healthy’s retail locations in order to reduce debt.

The Canadian natural products group sold its Trophic Vitamin Division to health and nutrition group Atrium Innovations for C$10.6m (US$10.5m).

It also entered into an agreement to sell six Healthy’s health food stores in Ontario to Good Health Mart for an undisclosed sum.

The sale proceeds will be used to reduce corporate debt, the company said.

However, the corporation emphasised that it remains in default under its credit facilities. Lenders therefore have the legal right to demand repayment of all indebtedness and enforce their security over all of the group’s assets.

To date, Planet Organic has failed to secure financing from other sources to meet its obligations to existing lenders.

Planet Organic said that it continues to review “all strategic options” to further reduce its borrowing levels.

“The sale of our Trophic Division to Atrium is a positive step towards completing the corporation restructuring we initiated six months ago,” EVP Darren Krissie said.

Related Companies

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU