Cape Breton Farmers’ Market Co-operative files for bankruptcy

The Cape Breton Farmers’ Market Co-operative, which has been facing financial challenges, has officially filed for bankruptcy. This comes a year after a dispute with its former landlord in downtown Sydney, N.S. In May of last year, the co-operative’s vendors were locked out of their space in the Old Triangle building due to owed rent and property taxes to D. MacPhee Realty.

At the time of the lockout, the market’s manager, Pauline Singer, revealed that the co-operative owed approximately $25,000 in property taxes that were supposed to be paid to the landlord as per the lease agreement. Following this incident, the insolvency trustee Goldhar & Associates published an ad in the Cape Breton Post announcing the market’s bankruptcy on June 2.

Despite the market’s financial struggles, the landlord forgave the co-operative’s debt and is not listed as a creditor in the bankruptcy. Lawyer Tony Mozvik, representing D. MacPhee Realty, expressed empathy towards the vendors, stating that they were hardworking individuals trying to make a living. He mentioned that after reaching an agreement on the debt, the vendors were allowed to retrieve their market stalls and personal belongings from the premises.

The Cape Breton Farmers’ Market Co-operative had received nearly $1 million in federal funding to renovate the space that previously housed Smooth Herman’s bar on Falmouth Street near the Esplanade. After being locked out of their original location, the market temporarily operated from the Pan Cape Breton Food Hub property in Bras d’Or before settling at the Cape Breton Exhibition grounds in North Sydney.

However, former vendor Mark Jantunen disclosed that the market has not been operational since December. He noted that while there are several smaller markets in the Sydney area, they all operate concurrently and lack a substantial customer base. Jantunen emphasized the importance of a centralized draw to attract as many customers as possible for the market’s success.

Despite the challenges faced by the Cape Breton Farmers’ Market Co-operative, the insolvency trustee refrained from providing further details on the bankruptcy. The first meeting of creditors is set to take place online on June 19. The Cape Breton Regional Municipality confirmed its status as a creditor, owed $3,540.46 for water consumption and arrears.

In conclusion, the Cape Breton Farmers’ Market Co-operative’s journey has been tumultuous, marked by financial difficulties and disputes with landlords. As the co-operative navigates through bankruptcy proceedings, stakeholders and vendors await further developments in the hopes of a resolution.