Lunchbox specialist Cook it takes refuge from creditors to be bought out

Times are tough in the ready-to-eat and boxed meal industries. In order to be able to continue in business, Cook it has taken steps to protect itself from creditors, and is planning to be bought out by British Columbia-based Fresh Prep Foods. Creditors of the Quebec-based company—including the Mouvement Desjardins and the Fonds de solidarité FTQ—could leave large sums of money on the table.       

McGill economist and agronomist Pascal Thériault is not  surprised by the difficulties facing the sector. 

"Consumers have to make choices," says the Farm Management and Technology Program  Director and Senior Faculty Lecturer. " Do I pay more for my groceries? Yes, but do we go on paying more for boxed lunches? The answer is  often no. It's not an easy business. You always have to reinvent yourself. When I talk to people who try this product, often the reason they give up is because they've been through the recipes."   

Consolidation does not guarantee success, but  Mr. Thériault believes that, in this still young industry, it  is "not necessarily bad news."