Global Sticks manufacturing plant shuttered
by Gary Rinne, CBC News
Posted: Jul 28, 2012 5:07 PM ET
Last Updated: Jul 28, 2012 5:06 PM ET
There's no sign of life at the Global Sticks manufacturing plant outside Thunder Bay.
The doors are locked, there is no smoke from the chimney, and no vehicles in the parking lot.
A sign on the door says the company's assets are now in the possession of a receiver, Grant Thornton.
Natural Resources minister Michael Gravelle said Friday that the news was disappointing.
"The mill has been shuttered. I understand the workers have been told the plant is closing, at least for this period of time, and obviously, it's not a good day".
Global Sticks opened with much fanfare in May of 2011, and employed about 75 people.
The company manufactured novelty wood items such as ice cream sticks and tongue depressors. It received $7 million in funding from the Northern Ontario Heritage Corporation.
Company had problems within months
Within months, it ran into difficulty. Company president Reggie Nukovic said it was restructuring.
This spring, it resumed at least partial production while still working on refinancing.
Gravelle said his ministry worked hard to try to help the company get back on its feet. "We had also been working with them to resolve their wood supply challenges, and they have been resolved. The wood supply issues would not be the reason the company has had to take this move," he said.
Gravelle said there is a strong demand for the products the company makes, but said it seems likely the inability to get more private sector investment is behind the shutdown.
Some discarded piles of popsicle sticks were strewn about the parking lot Friday.
Global Sticks president Reggie Nukovic could not be reached for comment, and representatives of Grant Thornton in Thunder Bay did not immediately return calls from CBC News.
Latest Thunder Bay News Headlines
- Hwy 587 closed after washout
- Repairs are underway as workers scramble to install a temporary culvert on Highway 587 after the road was washed out due to heavy rainfall. more »
- Swollen river frustrates fish taggers
- A co-operative rainbow trout tagging program on Portage Creek, near Sleeping Giant Park, has been put on hold due to high water. more »
- First Nation 'will not accept' disrespect of sacred grounds
- The chief of Fort William First Nation says the community is upset by an act of destruction on Mount McKay in Thunder Bay. more »
- Inspectors check flooded homes at Fort William First Nation
- Fort William First Nation near Thunder Bay remained in a state of emergency on Wednesday as inspectors assessed the safety of flood-damaged homes. more »
Top News Headlines
- Toronto Mayor Rob Ford fires chief of staff
- A week after bombshell allegations that Toronto Mayor Rob ford was videotaped smoking crack, the mayor's chief of staff was fired and Ford is continuing to stonewall reporters. more »
- Federal Court won't remove MPs over robocall allegations
- Alleged Ford crack video seller not responding to calls
- Bridge collapse on Washington interstate drops cars into water
- The Washington State Patrol says the Interstate 5 bridge over the Skagit River at Mount Vernon has collapsed, dumping vehicles and people into the water. more »