CBC
Cannabis company Canopy Growth Corp. announced Thursday it’s shutting down its Smiths Falls, Ont., headquarters and selling the building back to its original owner, Hershey Canada Inc.
In a statement, Canopy Growth said it has entered into an agreement to sell the facility back to the chocolate maker for approximately $53 million.
“They were a great corporate citizen when they were here for 45 years,” said Mayor Shawn Pankow at a press conference on Thursday. “We’re confident that they will be again.”
Selling the facility was part of a “focused effort to reduce costs and further enhance our balance sheet,” said Canopy Growth CEO David Klein in a statement.
Hershey confirmed to CBC that it has signed an agreement to purchase the 700,000-square-foot facility.
The purchase is “another step in our continuing investment in our supply chain network” that “provides us with the flexibility to support growth” Todd Scott, Hershey’s senior communications manager, wrote in an email Thursday.
Last month, Canopy Growth signed agreements with lenders to reduce its debt by $437 million over the next six months.
The Smiths Falls facility will be the seventh property the company has sold since April 1. The sold properties will total $155 million.
Other cost-saving measures announced by Canopy Growth earlier this year include laying off 800 workers and consolidating some of its cultivation operations.
Also
Canopy Growth is shuttering its headquarters in Smiths Falls, Ontario and selling the building back to its original owner, Hershey Canada.
In a news release on Aug. 17, the Canadian cannabis producer announced that it has entered into an agreement to sell its facility at 1 Hershey Drive to the chocolate maker for approximately $53 million.
“We are pleased to have reached an agreement with Hershey on this important sale. This is the latest milestone in our focused effort to reduce costs and further enhance our balance sheet,” CEO David Klein said in the release.
“Each of the steps we have taken as part of our transformation to a simplified, asset-light operating model supports our ability to deliver in-demand products from brands our customers love, with greater agility and less execution risk.”
The sale comes just months after Canopy announced plans to eliminate 800 jobs in February.
The former chocolate factory has served as the company’s corporate headquarters since 2013. Once the transaction is complete, it will become the seventh property that Canopy has sold since April 1.
The company added that it will “retain its Smiths Falls-based post-harvest manufacturing facility.”
According to LinkedIn, Canopy employs a total workforce of more than 920 people.
Major layoffs continue
Canopy’s decision to sell its Smiths Falls facility back to Hershey comes amid a flurry of layoffs in 2023.
Major North American companies, including SecureWorks, Rapid7, Dell, Telus, Amazon, Microsoft, Rogers, Ritual, and Meta, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.
SEE ALSO
• Firm launches $130M class action against Shopify for breach of contract
• Ross Video slashing workforce by 9% as tech layoffs mount
• Where are layoffs happening in Canada?
Rights when facilities are closed
The closure of an office or facility can impact non-unionized employees in Canada in a variety of ways:
- Termination with full severance pay: If a non-unionized employee loses their job because their workplace is closed, their employer must provide them with a full severance package. Proper compensation can be as much as 24 months’ pay, depending on various factors. However, it can also consist of working notice.
- Relocation to a new workplace: An employer may decide to move non-unionized workers to a new location. This is something a company can’t do if the change makes the commute longer or more difficult for an employee. In this situation, workers might be able to pursue full severance pay through a constructive dismissal claim.
- New job or duties: Companies may give some non-unionized employees new roles or duties if their original job is impacted by a closure. It’s illegal for employers in Canada to make major modifications to the terms of your employment without your consent. If this happens to you, you could have grounds for a constructive dismissal.
If you are a non-unionized employee at Canopy Growth, and your job is affected by layoffs or closures, contact an employment lawyer at Samfiru Tumarkin LLP immediately to find out what your options are.
ADDITIONAL RESOURCES
• Job changes in Ontario: Employee rights
• Can my employer make changes to my job in Alberta?
• Changes to your employment in B.C.: Your rights
Termination agreements for Canopy Growth employees
In Canada, non-unionized employees at Canopy Growth are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.
This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.
People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.
LEARN MORE
• Severance pay for cannabis industry employees
• Rights to severance for provincially regulated employees
• Severance entitlements during mass layoffs
Canopy Growth selling Smiths Falls facility back to Hershey for $53M
Sean Hocking
Source link
