November 29, 2019 — On 21 November, the same day it filed for chapter 11 bankruptcy protection, Bumble Bee Foods announced it had entered into an agreement with FCF Co., its primary supplier of tuna, which agreed to acquire the company’s assets for approximately USD 925 million (EUR 836 million).
In a statement accompanying the announcement, Bumble Bee President and Chief Executive Officer Jan Tharp said she “anticipates that the transaction will move swiftly and close within 60 to 90 days.”
November 27, 2019 — Something fishy is going on.
Bumble Bee Foods, LLC — renowned as for its Bumble Bee canned tuna products — filed for Chapter 11 bankruptcy protection on Thursday, years following a Department of Justice investigation which found evidence of a massive price-fixing scheme by the San Diego-based company.
Taiwanese fish supply chain company FCF Co. plans to put in a $925 million bid for the assets in a deal to be completed within 90 days, CNN reported.
“It’s been a challenging time for our company but today’s actions allow us to move forward with minimal disruption to our day-to-day operations,” Bubble Bee president and CEO Jan Tharp said in a statement.
A staple of American kitchen for over a century, the Bumble Bee brand has been in troubled waters over the past few years.
November 18, 2019 — Bumble Bee Foods LLC is preparing to file for bankruptcy within days over mounting legal expenses stemming from its involvement in a conspiracy to fix prices on canned tuna, according to people familiar with the matter.
The San Diego-based company, owned by London-based private-equity firm Lion Capital, is expected to file a chapter 11 petition shortly and will put itself up for sale, the people said. Bumble Bee didn’t respond to a request for comment. Lion Capital, which bought the company in 2010 for $980 million, also didn’t immediately respond.
Bumble Bee pleaded guilty in 2017 and agreed to pay a $25 million fine for having formed a cartel with its two main competitors, Chicken of the Sea and StarKist Co.
The Justice Department subsequently indicted Bumble Bee Chief Executive Christopher Lischewski for his alleged role in the conspiracy. Mr. Lischewski, who pleaded not guilty, took a leave of absence from Bumble Bee last year and is on trial in California federal court.
November 15, 2019 — Lerøy Seafood, Grieg Seafood, and SalMar each received subpoenas from the U.S. Department of Justice (DOJ) on Friday, 15 November, according to press releases from the three Norwegian salmon farming firms.
The subpoenas are part of a criminal investigation by the DOJ’s Antitrust Division into allegations of price-fixing in Norway’s farmed-raised salmon industry, according to the releases.
November 14, 2019 — Salmon farming giant Mowi has announced it is being investigated by the U.S. Department of Justice regarding allegations of price-fixing in Norway’s farmed Atlantic salmon market.
The move by the U.S. DOJ stems from an ongoing investigation by the European Commission into “concerns that the inspected companies may have violated E.U. antitrust rules that prohibit cartels and restrictive business practices.” That investigation became public in February, when the E.C. carried out unannounced inspections at the premises of several Norwegian firms involved in the farmed Atlantic salmon sector in Europe.
September 12, 2019 — The US Department of Justice (DOJ) has greenlit a proposed merger between the two largest Pacific cod longline companies, sources told Undercurrent News.
The DOJ review of the merger of Clipper Seafoods and Blue North, which is expected to include the Bristol Bay Native Corporation (BBNC) taking a majority stake in the combined company, was undertaken to ensure that the combined company wouldn’t create a monopoly. Sources told Undercurrent that the DOJ’s seal of approval means that the deal is likely to close this week.
Despite the combined company’s heft in the market, Clipper and Blue North argued that there are several factors that go into cod prices, like other species, “so there shouldn’t be any antitrust problems”, sources previously told Undercurrent.
September 12, 2019 — StarKist & Company has been ordered to pay a criminal fine of USD 100 million (EUR 90.3 million) for its role in a tuna price-fixing conspiracy, the statutory maximum fine.
The decision, which was announced by the Department of Justice (DOJ) on 11 September, comes after the court and the company wrangled over the monetary amount of the fine. StarKist’s attorneys had been pushing to have the fine lowered to USD 50 million (EUR 45.1 million), calling the decision “life or death” for the company, while prosecutors had been pushing for a full fine based on the company’s recent investment in TechPack Solutions, an India-based can and bottle technology firm.
August 1, 2019 — The merger of the two largest US Pacific cod longline catching companies is under review by the US Department of Justice (DOJ), sources familiar with the deal told Undercurrent News.
If the DOJ approves the merger, the combined company will be renamed Blue North Clipper (BNC) and then, around 30 days later, acquired by the Bristol Bay Native Corporation (BBNC), the sources said. BBNC is set to take 75% of BNC, with the existing shareholders of both companies owning the rest.
It’s thought BNC will be relocated to the offices of Clipper, which is seen as being the driver of the deal, they said. It’s also thought Dave Little, the main shareholder in Clipper, will ultimately head up the combined company. Patrick and Michael Burns, the brothers who founded Blue North, will also remain involved, sources said.
December 12, 2018 — The owner and officers of a Japanese-flagged fishing vessel were charged in federal court Tuesday with aiding and abetting the trafficking and smuggling of nearly 1,000 shark fins into and out of Hawaii last month.
During a year-long tuna-fishing expedition, the crew of a Japanese fishing boat —the M.V. Kyoshin Maru No. 20 — allegedly harvested fins from about 300 sharks, at least some species of which are protected under the Endangered Species Act and the Convention on International Trade in Endangered Species.
One of those species, the oceanic white tip shark, has declined in population by about 80-95 percent across the Pacific Ocean since the mid-1990s, according to the National Oceanic and Atmospheric Administration.
According to a U.S. Department of Justice press release, the crew cut the shark fins off, “in some instances while the sharks were stunned but still alive, and discarded the finless carcasses into the ocean,” all under the supervision of the captain and at the direction of the ship’s officers.
The illegally-harvested fins were discovered in the luggage of 10 Indonesian nationals, who had been employed as fishermen on the boat. The Indonesian fishermen had been dropped off from the fishing boat at a port in Honolulu and were intending to catch a flight to Jakarta.
October 22, 2018 — StarKist Co. agreed to plead guilty to a felony price fixing charge as part of a broad collusion investigation of the canned tuna industry, the U.S. Department of Justice announced Thursday.
The DOJ said StarKist faces up to a $100 million fine when it is sentenced. Prosecutors allege that the industry’s top three companies conspired between 2010 and 2013 to keep prices artificially high.
“We have cooperated with the DOJ during the course of its investigation and accept responsibility,” said StarKist chief executive Andrew Choe. “We will continue to conduct our business with the utmost transparency and integrity.”
StarKist is owned by South Korean company Dongwon Industries, one of the largest tuna catching companies in the world. The parent company’s website carries pledges to abide by ethical standards and good corporate citizenship.
The scheme came to light when Thai Union Group’s Chicken of the Sea attempt to buy San Diego-based Bumble Bee failed in 2015, according to court records. Chicken of the Sea executives then alerted federal investigators, who agreed to shield the company from criminal prosecution in exchange for cooperation.
Bumble Bee Foods last year pleaded guilty to the same charge and paid a $25 million fine, $111 million lower than prosecutors said it should have been. Prosecutors said they feared putting the financially struggling Bumble Bee out of business with a high fine and agreed to let the company make interest-free payments for five years.
Read the full story from the Associated Press at the Gloucester Daily Times