Plastube in Granby Declares Bankruptcy Amid $12 Million Loss

Plastube, a Granby-based firm, had more than $12 million in debt, La Voix de l'Est revealed. Faced with the circumstances, the company filed for bankruptcy on Monday, August 4.

Plastube was founded over 50 years ago and specializes in the manufacture and packaging of plastic tubes for a variety of businesses, including cosmetics, pharmaceuticals, and food. The company marketed itself as a tube provider in the North American market.

According to the Bankruptcy and Insolvency Registry, Plastube's liabilities are $12,666,314 and its assets are $4,325,394.

Caisse Desjardins de Granby-Haute-Yamaska and Investissement Québec are the secured creditors, each demanding $4.1 million and $2.3 million.

In 2016, a Quebec group led by the Montreal investment firm BDG and the Fonds de solidarité FTQ purchased Plastube, which was previously owned by American investors. Investissement BDG Plastube and the Fonds régionaux de solidarité FTQ are the secured creditors, each seeking $2 million and $500,000.

"We didn't see it coming."

The management of the Granby Industriel organization was unaware of the company's potential financial issues.

"We received the news on Monday since Plastube employed temporary foreign staff. "We didn't expect it [the bankruptcy]," said Éric Tessier, head of industrial development at Granby Industriel, in an interview with La Voix de l'Est.

Lukas Dufault, the general director of the same organization, attempted unsuccessfully to reach Plastube's administration.

"Not so long ago, there were significant investments to modernize equipment to improve production quality," Tessier told me.

In early November 2018, the company reported an investment of $8 million, with $5.5 million spent on the purchase of a new printer.

Plastube management authorized large wage increases in the spring of 2023 and planned a 22,000-square-foot expansion to consolidate the company's storage activities.

According to Éric Tessier, Plastube employed over 80 people. Services Québec plans to form a redeployment committee.

The creditors' meeting will be held on August 21 at 10 a.m. by videoconference.