New bids expected for FPI assets: sources

There appears to be movement on selling assets of Fishery Products International, the key fish processing company in Newfoundland and Labrador.

St. John's-based FPI expressed an interest in selling its groundfish operations last summer, but discussions with other companies notably the Barry Group and entrepreneur Ches Penney eventually fizzled out.

Sources tell CBC News, however, that Barry Group owner Bill Barry has submitted a new proposal for the company's Newfoundland assets, but not its U.S.-based international marketing arm.

Corner Brook-based Barry is reportedly interested in FPI's assets involving groundfish harvesting and processing.

Because of the FPI Act, provincial legislation created to govern the former Crown corporation, those assets would come under strict conditions involving where quotas may be landed.

Ocean Choice, a company affiliated with the Penney Group, is also expected to submit a new offer for consideration within a matter of days.

John Risley, the Nova Scotia businessman who is one of the three key directors of FPI, has said the company rejected an earlier Ocean Choice proposal, calling it not good enough to present to the company's board.

FPI has said it cannot turn a profit in its groundfish operations, citing high labour costs in processing, poor prices in international markets and strong competition from Chinese companies.

FPI remains mired in protracted labour negotiations with the Fish, Food and Allied Workers union.

In December, 98 per cent of FFAW members voted to reject a wage rollback that FPI says it needs in order to survive.

Barry, who reopened a plant in Harbour Breton that FPI had idled, was able to negotiate concessions with the town's workforce.

FPI was created in 1984, from the ashes of three failing fish companies.