Big ambitions have collapsed as Upper Canada Growers Ltd. and UCG Land Inc. were assigned into bankruptcy on May 16, 2025. BDO Canada Limited was appointed as Trustee in Bankruptcy and also appointed as Receiver over the assets of the two companies by order of the Ontario Superior Court of Justice. All 128 employees were terminated effectively on May 16.  

The Bank of Nova Scotia, the secured creditor, is owed $24.9 million as well as $2.1 million in debtor-in-possession financing. 

The family-owned enterprise helmed by Robert Haynes, president and CEO, was also home to a state-of-the-art tissue lab at Harrow, Ontario. It produced high-quality tissue culture fruit trees, rootstocks and scions with a capacity for three million clean plants per year.

According to the website, “We are fully equipped for commercial micropropagation of apples, grapevines, plums, and peaches and are constantly expanding our research and production on new initiated varieties. The stock of selected cultivars is initiated and established using micropropagation technologies, followed by mass multiplication of the stock cultures and initiation of a dense rooting system.” 

In addition, the business had planted 320 acres of apples and 110 acres of peaches.

“This bankruptcy is a sign of the times,” says Chris Hedges, chair, Ontario Apple Growers, citing the rising costs of production. “It’s not exclusive to the apple or tender fruit sector. The bigger an operation, the more pressure to meet the financial numbers. If there are any losses, the hurdles are harder to overcome.” 

While costs of production have risen, particularly in labour and materials, other trends are impacting tree fruit.  

“Chain stores can import fruit from all over the world,” says Hedges. “Apples don’t have an infinite market.”

As Canada’s largest tree fruit nursery, the demise of Upper Canada Growers Ltd will impact the industry. 

“We are in the process of selling the assets while continuing to operate with limited resources,” says Michael Basso, a senior vice-president BDO. “We are continuing to sell inventory and honouring contracts where we can. A few folks won’t get their deposits on orders for 2026.”

Basso says that 19 former employees and 21 temporary foreign workers have been contracted to look after the trees and other assets while the Receiver executes on its mandate to realize on the property under the supervision of the Court. He suggests that unsecured creditors check the website for periodic updates (https://www.bdo.ca/services/financial-advisory-services/business-restructuring-turnaround-services/current-engagements/upper-canada-growers-ltd).

At press time, there were no fixed milestone dates. 

Anyone planning to order trees for 2026 will need to find alternate suppliers or wait to see what comes of the Receiver’s marketing process with the hope that there may be a buyer who wants to pick up where UCG left off. There are some smaller suppliers in Canada along with several in the U.S. Of note, Canadian Fruit Tree Nursery Cooperative Ltd, based at Jordan Station, is planning to ramp up its services in peaches, plums and nectarines to growers outside its cooperative structure.

©The Grower