Clearwater Seafoods is making big changes to its inshore lobster business and is temporarily laying off workers at its Arichat, N.S. processing facility.
Employees were informed Wednesday that the layoffs were effective the same day, and that it was anticipated they would be recalled back to work by a new owner around the first week of May.
Global News obtained a copy of the letter delivered to workers, which stated, “in short, Clearwater has made the strategic decision to exit the lobster business.”
In a statement, Clearwater said it has decided to change its inshore lobster procurement, grading, live storage and processing business.
“We are currently in late-stage negotiations to sell our Arichat live lobster holding facility to an experienced local operator, and we will no longer operate the seasonal lobster processing line at our Lockeport facility,” wrote Christine Penney, vice-president of sustainability and public affairs.
“The Lockeport plant remains open and will remain in full, 12-month operation as a scallop-focused facility.”
Councillors with the Town of Lockeport said they are “deeply disappointed” by the decision and the “significant impact” it will have on the community.
“For decades, Clearwater has been a cornerstone of our community, and this news is especially difficult for all our friends, families, and neighbours directly affected,” the mayor, deputy mayor, and three councillors wrote in a statement.
“As a Council, we are committed to attracting investment and supporting both new and existing businesses in Lockeport.”
Clearwater said the company has 1,100 employees across Atlantic Canada and the changes announced this week impacts about five per cent of the company’s workforce.
Penney added the changes are “difficult but necessary” for the long-term health of the business in the “challenging market conditions.”
“We are refocusing our lobster business on the offshore harvesting operations and strategic alignment with other affiliated companies. Our shareholders are moving forward with investment in a new offshore vessel to support this business,” she said.
Clearwater began in the 1970s as a small lobster retailer in Nova Scotia. In 2021, it was acquired by a partnership between Premium Brands and seven Mi’kmaq communities — led by the Membertou First Nation in Cape Breton and Miawpukek First Nation in Newfoundland and Labrador — in a $1 billion deal.
