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Former CannTrust cannabis operation abruptly closes

Some 100 workers laid off without notice in Fenwick
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In June 2018, former Mayor David Augustyn, centre, with CannTrust officials at the Fenwick facility's official opening. Far left, Eric Paul; in mirrored sunglasses, Peter Aceto; far right, Mark Litwin. Augustyn declared that the company's marijuana operation “provides hope to our community.” Paul, Aceto, and Litwin later faced criminal charges related to illegal cannabis growing at the site. They were acquitted in December 2022. File photo

The ignominious saga of a Fenwick cannabis grow-op appeared to reach its final end this past week when Phoena Inc. announced it was winding down business and laying off approximately 100 workers employed at its controversial Balfour Street facility.

Phoena, better known as CannTrust when it had its Health Canada growing licence suspended in 2019, announced April 7 it was entering creditor protection, with plans to liquidate its assets. Multiple reports last week indicated employees at the Fenwick site were subsequently told they were being terminated effective immediately.

Mayor Marvin Junkin told PelhamToday that while he feels for the affected workers, the closure ends an unhappy chapter for many nearby residents.

“You never like to see job losses, but if it had operated within the rules set out by Health Canada, and if this company hadn’t have been releasing these odours into the air, then they would’ve been welcomed,” the Mayor said.

Complaints about odour and light were well-established prior to CannTrust’s legal and financial problems, which began in 2019 when a former employee blew the whistle to PelhamToday (then the Voice of Pelham) and other media outlets about illegal growing in the Fenwick greenhouse. The scandal plunged the company into a four-year death spiral that culminated last week.

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Fenwick resident and former CannTrust employee Nick Lalonde blew the whistle on illegal operations at the Balfour Street operation in 2019. / FILE

Junkin said he was unaware how many of the affected employees are actually Pelham residents, but said the Ontario Ministry of Labour contacted him in the wake of the layoff news — something he said is standard when larger employers close.

“It’s common procedure that when a company fails in a municipality, they do reach out to the mayor just to let them know,” Junkin said. “They’re going to make them aware of the options that are open to them, and hopefully guide them into other areas of employment.”

It is not known what will happen to the actual greenhouse in Fenwick, although rumours exist that fruit growing operations may have potential interest in the site.


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John Chick

About the Author: John Chick

John Chick has worked in and out of media for some 20 years, including stints with The Score, CBC, and the Toronto Sun. He covers Pelham Town Council and occasional other items for PelhamToday, and splits his time between Fonthill and Toronto
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