Major BC restaurant group owes millions, files for creditor protection

The Henry in Surrey (Google Maps)

A major restaurant group operating in BC’s Lower Mainland for more than two decades has filed for creditor protection and owes millions in dollars.

Based in Surrey, the Joseph Richard Hospitality Group controls several well-known establishments like the Steveston Hotel in Richmond and Oak & Thorne in Langley.

A petition was filed with the BC Supreme Court on July 17.

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The Joseph Richard Group has been in operation for 21 years. On its LinkedIn page, it calls itself one of the fastest-growing hospitality groups in the country. Based on documents from the Supreme Court of BC, it could be that it grew too fast.

The group owes $45,389,900 to creditors, including $34.4 million to Edmonton-based Canadian Western Bank and over $5 million to Canadian Revenue Agency. The group also owes the Bank of Montreal $2.3 million and Port Coquitlam-based Sysco $1.4 million.

In addition, the petition states that Steveston Hospitality Services didn’t pay rent in June or July, and it owes the landlord over $60,000.

The petition states that because of the pandemic, construction could not be completed on two planned businesses, including Monkey See Tiki Bar and Sudo Asian Kitchen.

Daily Hive previously reported that the Joseph Richard Group would create and operate a “culinary and retail market experience” inside the upcoming Amazon retail office. We’ve asked the Joseph Richard Group if this operation is still going forward.

BC Supreme Court documents also mention other factors that have impacted the major restaurant and hospitality group.

The company says that increases to minimum wage forced them to face further economic challenges, as did labour shortages and the implementation of higher employer health taxes in BC. The BC government introducing an additional five paid sick days also had an impact, as did supply chain issues, the petition states.

According to the petition, the need for creditor protection stems from the impacts of the COVID-19 pandemic.

Another well-known hospitality company in the province, the Donnelly Group, faced similar hardships and recently applied for creditor protection as well.

Joseph Richard Group responds

Ryan Moreno, one of the founders of the major BC restaurant group, responded to Daily Hive’s request for comment.

“The fact that the company is still going strong after these past years is a testament to the commitment and passion of many people within the organization and the constant support of our local communities,” he said.

We’ve learned that employees are not going to be laid off and that it’ll be “business as usual.”

Outstanding gift cards are still going to be honoured and at this time, no locations will be closing. There’s also optimism that the Amazon location could still move forward.

“I hope that our actions, along with many other similar businesses that have sought assistance and or restructuring measures, set a positive example by highlighting that seeking assistance during difficult times is not stigmatized but sometimes a rather necessary act for a company and its people,” Moreno added.

Currently, there’s a stay of proceedings until 9 am on July 27.