The employee group considering the purchase of the shuttered Pine Falls newsprint mill has told the mill's owner, Tembec, that the deal is off. The group concluded it could not make a viable business case for the purchase.
According to the Winnipeg Free Press online edition on Aug. 24, Bruce Hansen, a consultant advising the buyout group, said the group was "quite astute in their approach" to the task and did its due diligence. It was just powerless to overcome the many barriers that have defeated so many other companies and would-be forestry industry investors in recent years.
"This is a difficult time for the former Tembec workers, their families and the buyout group who have worked so long to preserve the mill and the jobs that are critical to the town," said Manitoba Labour and Immigration Minister Jennifer Howard. "I commend the extensive efforts and diligence undertaken by the buyout group as it explored the financial viability of purchasing the mill from Tembec."
Thursday, 26 August 2010 16:00
The employee group buyout effort for Pine Falls abandoned
Ian Melin-Jones
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Canadian News
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