Tomavo Closes Final Stores As Creditor Protection Case Continues
MONCTON – An Atlantic Canadian produce retailer that styled itself an affordable alternative to larger chains has closed its doors in Moncton and Halifax.
In a December 19 Facebook post, Tomavo announced the closure of its locations on Mountain Road in Moncton and Chain Lake Drive in Halifax.
The post said the Mountain Road location permanently closed on December 19, and the Chain Lake Drive location closed the following day at 5 p.m.
They were the last two locations Tomavo had kept open as the chain’s debts and controversy piled up.
“I want to thank all our loyal wonderful and caring staff and customers for supporting us through thick and thin,” said a spokesperson identified as “the Apple Lady” in the Facebook post. “I’ve met some amazing people and learned so much through this journey and some have become like family to me.”
Tomavo had been rapidly expanding across the Maritimes but recently began shutting down some stores. As more Tomavo branches closed, suppliers and former employees began complaining of unpaid bills and wages.
Earlier this year, Huddle spoke to a former Moncton-based employee who claimed the chain didn’t pay him for much of his work.
Tomavo filed for creditor protection in October. Those documents show the company owes more than $3-million to dozens of creditors from Nova Scotia, New Brunswick, Prince Edward Island, Quebec, Ontario, and British Columbia – along with a couple of American businesses
The documents also include an affidavit filed by owner Mohamedamer Abdualsoud in November that pins some of the blame for Tomavo’s troubled finances on the economic impacts of the pandemic.
Abdualsoud attributed a 30 to 40 percent decline in revenue “in or around October 2021” on negative sentiment generated by media coverage of its outstanding debts.
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“These local farmers are also on record stating that Tomavo’s debts have not seriously impacted their business, as most of the produce purchased was produce that would not otherwise have been sold,” Abdualsoud contended in the affidavit.
Abdualsoud attributed an 80 percent revenue drop to the lockdown and restrictions and the fact that Tomavo was not deemed essential like other grocery chains. He claims the chain didn’t get any form of Covid-19 relief from the government.
Abdualsoud wrote that when restrictions were relaxed in summer 2021, revenue dropped by 50-60 percent – something he attributed to declining demand for specialty produce.
“This also increased our overhead as we were required to employ additional staff to manage outside lineups, clean carts and fill online and pickup orders,” Abdualsoud wrote.
He noted the company attempted to mitigate losses by offering curbside pickup and an online store, which generated $150,000 in revenue.
Abdualsoud listed Montreal-based supplier Courchesne Larose Ltd. as Tomavo’s largest supplier. He said it provides 95 percent of Tomavo’s products and that he’s working with the supplier to improve numerous aspects of the business. He said the supplier is paying for all legal and accounting expenses Tomavo has incurred as it prepares a creditor proposal.
Abdualsoud also disclosed plans to develop a mobile app in the affidavit, with plans to launch it in Toronto and Montreal with the help of Courchesne Larose.
Abdualsoud wrote that he ran several businesses in Prince Edward Island – including a fruit and vegetable business – until 2015 when he was diagnosed with cancer that forced him to close those businesses. He wrote that he first launched Tomavo on Ferdinand Boulevard in Dieppe with a $75,000 personal investment in 2017, before moving to its now-closed Mountain Road location.
In the affidavit, Abdualsoud said Tomavo saw revenues of $1.5- to $2-million between August 2017 and November 2019, noting that the Bedford Tomavo saw about 1,000 customers a day walk through its doors, and $250,000 to $300,000 in sales, per month.
Huddle contacted the CEO’s assistant, Tina Black, for comment but received no response before the time of publication.
Sam Macdonald is a Huddle reporter in Moncton. Send him your feedback and story ideas: [email protected].
Editor’s Note: This story was last updated on December 20, at 3:45 p.m.