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September 27, 2010

Town nixes grant for cannery buyer

By The Mainebiz News Staff

The town of Gouldsboro has decided not to apply for a $400,000 federal grant on the behalf of the Massachusetts-based lobster company buying a shuttered sardine cannery, after the company failed to provide more information on its plans.

Selectmen last week again reversed its decision on the grant application and voted against it, citing Live Lobster Co.'s failure to provide the board with requested financial information, according to the Maine Public Broadcasting Network. In August, the Chelsea-based company announced it was buying the former Stinson Seafood cannery in the town's village of Prospect Harbor from Bumble Bee Foods LLC with plans to turn it into a lobster processing facility. The board of selectmen initially voted against supporting the grant, saying it would subsidize competition for local lobster distributors. Then, a week later, the board agreed to sign a letter of intent to apply for the Community Development Block Grant, with the stipulation that Live Lobster provide more information, including a profit and loss statement, a business plan and projected income and expenses, according to MPBN.

Live Lobster Co. told the news station it will move forward with its plan and seek additional funding sources. The company did not say why it failed to deliver the requested information.

A federal court judge in Boston has placed an injunction on the company that allows the U.S. District Court to cancel any purchase agreements into which Live Lobster enters, as part of a lawsuit filed against the company by former general manager and current minority shareholder Alan Brown.

Go to the article from MPBN >>

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