Saving Seafood

Whole Foods’ seafood plant closing, impacting 60 employees

June 20, 2019 — The mayor of Gloucester, Massachusetts, U.S.A., is “disappointed” that Whole Foods Market is suddenly closing its seafood processing facility in the city.

The Austin, Texas-based retailer notified the city via a letter to Mayor Sefatia Romeo Theken that its North Atlantic Region will be permanently closing its Pigeon Cove Seafood facility in Gloucester, effective 15 August.

“I am disappointed at the decision made by Whole Foods Market to close its Pigeon Cove Seafood Facility. This closure will result in the elimination of 60 full-time positions,” Romeo Theken said in a statement provided to SeafoodSource.

However, Whole Foods officials agreed to talk to Romeo Theken about the closure next week, the Gloucester Daily Times reported.

“We want to talk with them about what they’re going to do to try to get their employees other jobs, but we also want to speak with them about the reasons for closing it and their plans for the space at 15 Parker St.,” she told the newspaper.

The company’s rental lease at the Parker Street facility – which is owned by a Montagnino family trust controlled by James Montagnino – is not set to lapse until November 2020, according to Romeo Theken.

“We want to find out if they plan to sublet that space or exactly what they plan to do,” she said.

This is the second time in a month that a seafood processing plant appears to be shutting down operations in Gloucester, after National Fish and Seafood closed in May. Since then, however, a new group called NSD Seafood Group re-opened the facility and said it would re-hire as many NFS employees as possible.

Read the full story at Seafood Source

Facing “too many legacy issues,” National Fish and Seafood closes

May 13, 2019 — National Fish and Seafood announced that it was immediately ceasing operations on Friday, 10 May, marking the end of its long history in the seafood business and putting 150 employees out of work.

Founded in 1979, the Gloucester, Massachusetts, U.S.A.-based seafood processor, which sells the Matlaw’s stuffed clam line, had been reeling financially since owner Pacific Andes filed for bankruptcy in 2016. NFS put itself up for sale, and several companies – including Red Chamber – considered purchasing it, but ultimately never did.

“Unfortunately, despite great strides we made in improving operating performance, National Fish just had too many legacy issues that prevented us from consummating a sale,” NFS President Todd Provost said in a press release.

In January 2019, NFS demanded payment from Pacific Andes, which owes NFS USD 30 million (EUR 28 million), according to court documents. Plus, NFS was paying out legal fees for its trade secrets lawsuit against Tampa Bay Fisheries for the latter half of 2018 and early 2019, before both suppliers agreed to settle the case in mid-March. And former NFS President Jack Ventola was convicted of fraudulently diverting money from the company and then not paying taxes on the income.

Read the full story at SeafoodSource

 

Trial date set in case of clam espionage

November 7, 2018 — The federal trial between Gloucester-based National Fish and Seafood and the Florida-based seafood processing competitor it accuses of corporate espionage now is not expected to commence until at least midway through 2019.

U.S. District Court Judge Leo T. Sorokin on Monday set next July 22 as the opening trial date in the lawsuit between National Fish and competitor Tampa Bay Fisheries of Dover, Florida.

In the lawsuit, initially filed last July, National Fish accuses Tampa Bay Fisheries of hiring away Kathleen A. Scanlon, a 23-year employee at National Fish, and using her to help steal recipes, client information and other trade secrets on her way out the door from the Gloucester company.

The order by Sorokin, who sits in the U.S. District Court in Boston, also established the discovery schedule for the trial and set a status conference with attorneys from both sides for the afternoon of April 17.

If Sorokin’s trial date holds, the trial will begin almost exactly one year since the the intellectual property battle between the two seafood processing competitors burst into the public consciousness.

Read the full story at the Gloucester Daily Times

In plea deal, former National Fish president likely to pay $1m in restitution

December 29, 2017 — Former National Fish and Seafood president Jack Ventola will likely pay $1 million in restitution to the Internal Revenue Service (IRS) and face jail time after defrauding his former company, which is majority owned by Hong Kong-based conglomerate Pacific Andes International Holdings (PAIH).

Ventola was arrested on Nov. 23, 2015, in connection with failing to pay taxes on more than $2 million in income he earned from 2006 to 2009, according to the US attorney’s office for the district of Massachusetts. He was indicted on three counts of filing false tax returns and one count of conspiracy to defraud the IRS.

Ventola and two others, former National Fish senior sales executive Richard Pandolfo, and Michael Bruno, an accountant who didn’t work for the company but served on its board, face charges that include tax fraud in connection with an alleged scheme that reportedly charged the company for labor services never provided.

Pandolfo and Bruno pleaded guilty but have yet to be sentenced. Ventola had initially pleaded not guilty but later signed a plea agreement with prosecutors that was filed on Dec. 19. As part of that agreement, Ventola admitted to seven counts of making and subscribing a false tax return while prosecutors dropped three more serious charges: conspiracy, wire fraud and mail fraud.

For the charges he admitted to Ventola could face a maximum of three years in prison, three years supervised release, a $250,000 fine and restitution.

However, prosecutors will instead recommend a lesser prison sentence, a to be determined fine and $1.073m in restitution. Judge Douglas Woodlock is slated to sentence Ventola on March 27.

Read the full story at Undercurrent News