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A 91-year-old Saskatchewan agricultural equipment manufacturer has been granted creditor protection after telling a Saskatoon court its ambitious growth strategy failed and it does not have enough money to pay its debts and continue operations.

Morris Industries Ltd. — the public face of a group of related companies — made its application for protection under the Companies’ Creditors Arrangement Act (CCAA) after experiencing a “liquidity crisis” last month, court documents state.

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The CCAA is a federal process that allows corporations owing more than $5 million to restructure while avoiding bankruptcy.

Photo by Matt Smith / Saskatoon StarPhoenix

According to the documents, Morris Industries’ ambitious and expensive growth strategy allowed it to introduce new products but was derailed by unforeseen warranty issues as well as slumping sales attributable to trade wars and poor weather.

That strategy was launched by a new management group, which took over the once-family-owned company in 2017.