What happened to the Very Good Butchers? Plant-based meat company closing most B.C. operations
A British Columbia company that was once at the forefront of the booming plant-based meats industry is shuttering stores and production plants as it struggles to survive.
The Very Good Food Company, which operates core brands The Very Good Butchers and The Very Good Cheese Co., is pulling out of its flagship shop in Victoria and putting the opening of another flagship shop in Vancouver on the chopping block.
The company is also closing three production plants in Victoria, Vancouver and California, while consolidating production in its remaining facility in Vancouver.
First-quarter financial results released last week show the Very Good Food Company lost more than $15 million in cash and cash equivalents between Dec. 31 and March 31, 2022, threatening the sustainability of the company.
"While the company has been successful in the past in obtaining debt and equity financings, there is no assurance that the company will be able to do so going forward," the management said in the quarterly update.
"The existence of these conditions indicates that there are material uncertainties which may cast significant doubt on the company's ability to continue as a going concern," the company noted.
FOUNDERS LEAVE COMPANY
The Very Good Butchers rose from humble beginnings as a "bean butcher" stand at a farmers' market on Denman Island, B.C. The operation eventually moved to Victoria and the founders made a successful appearance on the TV show Dragon's Den.
The company began trading on the Canadian Securities Exchange in June 2020 and raised more than $4 million in an initial public offering, sending its stock price soaring.
But founder Mitchell Scott was ousted as the company's chief executive in April, followed by the resignation of co-founder James Davison from his role as chief research and development officer.
Weeks later, the corporation announced the appointment of a former Nestlé executive as interim CEO starting May 2, and revealed that its president and interim chief financial officer had also resigned.
The company's share price hit record lows on the release of the quarterly results last week. Management says it expects to further reduce its workforce, streamline operations and sell off equipment as it cuts expenses to the bone.
The Very Good Food Company did not respond to CTV News requests for comment on the closures and staff layoffs.
Interim CEO Matthew Hall said in a statement accompanying the quarterly report that the company is also scaling back its online sales as it refocuses on its wholesale and food services business in the United States.
"During the very short period of time that I have been with the company, I have made great strides in identifying the problem areas and have developed a strategy to put the company back on the right track," Hall said in the statement on May 17.
"My strategy focuses on stabilizing, right-sizing, and optimizing the business," he added. "While it will take some time for the financial results to catch up with the progress we are making, I am confident that we will start to see great improvements in future quarters."
CTVNews.ca Top Stories
'They needed people inside Air Canada:' Police announce arrests in Pearson gold heist
Police say one former and one current employee of Air Canada are among the nine suspects that are facing charges in connection with the gold heist at Pearson International Airport last year.
House admonishes ArriveCan contractor in rare parliamentary show of power
MPs enacted an extraordinary, rarely used parliamentary power on Wednesday, summonsing an ArriveCan contractor to appear before the House of Commons where he was admonished publicly and forced to provide answers to the questions MPs said he'd previously evaded.
Leafs star Auston Matthews finishes season with 69 goals
Auston Matthews won't be joining the NHL's 70-goal club this season.
Trump lawyers say Stormy Daniels refused subpoena outside a Brooklyn bar, papers left 'at her feet'
Donald Trump's legal team says it tried serving Stormy Daniels a subpoena as she arrived for an event at a bar in Brooklyn last month, but the porn actor, who is expected to be a witness at the former president's criminal trial, refused to take it and walked away.
Why drivers in Eastern Canada could see big gas price spikes, and other Canadians won't
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
Doug Ford calls on Ontario Speaker to reverse Queen's Park keffiyeh ban
Ontario Premier Doug Ford is calling on Speaker Ted Arnott to reverse a ban on keffiyehs at Queen's Park, describing the move as “needlessly” divisive.
'A living nightmare': Winnipeg woman sentenced following campaign of harassment against man after online date
A Winnipeg woman was sentenced to house arrest after a single date with a man she met online culminated in her harassing him for years, and spurred false allegations which resulted in the innocent man being arrested three times.
Woman who pressured boyfriend to kill his ex in 2000s granted absences from prison
A woman who pressured her boyfriend into killing his teenage ex more than a decade ago will be allowed to leave prison for weeks at a time.
Customers disappointed after email listing $60K Tim Hortons prize sent in error
Several Tim Horton’s customers are feeling great disappointment after being told by the company that an email stating they won a boat worth nearly $60,000 was sent in error.