June 22, 2022 | by: isaacpiotrowski

The Zenabis Cannabis Plant in Atholville is Now Under Court Protection From Creditors

 

 

The former Zenabis cannabis plant in Atholville, NB is now under court protection from creditors after being declared insolvent.

 

Zenabis, which had already been dealing with loses and debt issues, was taken over by HEXO Corp. last year. It became a subsidiary of the Québec based cannabis giant, but the financial picture only got worse. Last week, the Atholville plant announced it was laying off another 142 workers, with a little over 100 employees still remaining. At one time it employed close to 500 people.

 

HEXO Corp. also announced that it will no longer be providing any cash or financial aid to its Zenabis group and the Atholville facility. In light of that, The Tribune reports that the Atholville plant has temporarily secured creditor protection for now, with hopes to renegotiate its debt with backers , but the only hope for its future may rest in securing another buyer.