Sale of former Britex Group Ltd. does not close

Mar 1, 2004

HALIFAX — KPMG Inc., receiver for the former Britex Group Ltd., confirmed today that the sale of the assets at the textile plant did not occur by the final closing date, and will now wind down the operations of the plant and sell the assets individually to recover as much of the outstanding debt as possible.

“We appreciate that the 90 employees and community have gone through a tumultuous time and feel for them as they ponder their future,” said Stephen Lund, President and CEO of Nova Scotia Business Inc. “We’ve maintained from the beginning of the process that we wanted to see a viable employer in the area with no additional risk to taxpayer money.”

The receiver has been operating the plant since the company was placed into receivership in October 2003 to present the most attractive business opportunity for prospective buyers. On January 14, KPMG had accepted a bid of $1.175 million for the facility, with the closing date for the sale set for January 30. The purchaser had asked for and received three subsequent extensions, with the final date set for February 26. The date passed without closing. NSBI and the Office of Economic Development had been underwriting the costs associated with running the plant while the transition was to take place.

The receiver will now act to recover as much of the $3.6 million that is owed to the Province by Britex Group Ltd. The plant will continue operations on an interim basis in an effort to complete orders and work in progress.

Nova Scotia Business Inc. is the province’s business development agency, an organization that works with companies to deliver business solutions. The private sector-led organization works to attract new businesses to the province and help those already in Nova Scotia expand through services such as export development and financing.