Toronto-based Joriki has permanently ceased operations at all four of its processing facilities in the wake of a deadly listeria outbreak, resulting in massive layoffs across its North American operations, according to The Canadian Press. The company, which specialized in processing plant-based milk products, has closed two plants in Ontario, one in British Columbia, and a subsidiary-operated facility in Pennsylvania.
The shutdown comes as Joriki seeks creditor protection, with company officials confirming they lack the financial resources to maintain operations. Financial documents reveal the extent of the company’s difficulties, showing outstanding debts exceeding CAD 200 million owed to more than 100 organizations, including CAD 775,000 in unpaid wages to its workforce.
The Canadian Food Inspection Agency (CFIA) identified Joriki’s Pickering, Ontario facility as the source of a severe listeria outbreak that resulted in three deaths between August 2023 and July 2024. The contamination spread across multiple Canadian provinces, with at least 20 confirmed cases reported in Ontario, Quebec, Nova Scotia, and Alberta.
The health crisis triggered widespread product recalls affecting various plant-based milk products, including almond, oat, and coconut varieties. Among the affected products were items packaged under the Silk brand and Walmart Canada’s Great Value private label. Danone Canada, the manufacturer of Silk products and one of Joriki’s creditors with claims exceeding CAD 200,000, has shifted production to other facilities within its North American network to maintain supply.
The closure has had immediate and significant impacts on the company’s workforce. Hundreds of employees are confirmed to have lost their jobs across all four facilities.
According to a company spokesperson, Joriki faces severe challenges stemming from the product recall, including substantial business losses and ongoing liquidity issues. The company’s attempts to find a buyer have faced setbacks, with a potential acquisition falling through on December 23. Despite these challenges, Joriki continues to explore potential transactions that could lead to facility acquisitions and possible re-employment opportunities for displaced workers.
Proposal trustee Alvarez & Marsal Canada said that while Joriki is not declaring bankruptcy, the company requires a stabilized environment to evaluate its strategic options. The situation has also spawned legal challenges, with Joriki, Danone, and Walmart Canada named in an uncertified class-action lawsuit filed in Quebec concerning the listeria outbreak.
The closure marks a significant disruption in Canada’s plant-based milk processing sector and highlights the far-reaching consequences of food safety incidents on both companies and their employees. While the company has stated it made every reasonable effort to protect jobs, the immediate future remains uncertain for hundreds of affected workers across multiple provinces and states.
Commenting on this article, the nation’s leading Listeria lawyer said, “This closing of these plants is another unforeseen consequence of a large-scale outbreak of foodborne illness. Not only did three people lose their lives, but also hundreds of people have now lost their livelihoods.”
