Long-standing Newfoundland and Labrador-based company Kento Limited is not bankrupt, but is closing one of three of its plants in the province, says the company's appointed trustee.
Kento Limited filed a notice of intention with the Superintendent of Bankruptcy Canada Monday to propose restructuring the windows and doors manufacturer, said Ian Penney of Janes and Noseworthy.
Its plants in Conception Bay South and Springdale are operating as normal and will not be closing, said Penney, despite indications by the union representing workers at ACAN Windows and Doors in Paradise that all three would be shuttered.
Kento took over ACAN in December 2014 when it was in financial trouble and had hoped to turned it around, Penney said.
7 workers left
Greg Pretty of the Fish, Food and Allied Workers union told CBC News Thursday of the approximately 70 employees at ACAN in Paradise, 35 got their notice on Nov. 20.
Pretty, who spoke on behalf of the union which represents the workers at ACAN, said the news was "startling."
Just seven workers remain at the plant in Paradise to finish production by Friday, Pretty told CBC News.
Pretty said office equipment was removed from ACAN last weekend, which was an "ominous" sign of "big trouble in the plant."
Didn't see it coming
Pretty said calls to owner Clarence Kent were returned on Tuesday but the union is still seeking more information.
"It's awful," Pretty said.
He said there are long-term employees who have been at the plant, Pretty said, adding it's hurtful the "rug was pulled out from under them."
An earlier version of this story indicated that Kento Limited has filed for bankruptcy and that three of its plants were set to close. In fact, only ACAN Windows and Doors will be closing, and Kento is not bankrupt.Nov 26, 2015 12:37 PM NT