Maruha Nichiro has announced the sale of its subsidiary Peter Pan Seafoods (PPSF), resulting in a JPY 2.91 billion ($27.9 million) loss for the company.
The sale of the business to entrepreneur Rodger May and McKinley Capital Management is to be completed on 31 December 2020.
PPSF operates a factory in Alaska that processes seafood products such as salmon.
According to Maruha, factors such as high fish prices due to intensified competition, poor fish catches and a fall in production have resulted in operating losses for the Alaskan business in recent years.
PPSF posted an operating loss of JPY 2.2 billion ($21.3 million approx.) for the year ending in March 2020.
The company says that the business is not expected to see improvements, resulting in its decision to divest all PPSF-owned factories, fixed assets and operations.
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