Canopy Growth selling Smiths Falls facility back to Hershey for $53M

Canopy Growth is shuttering its headquarters in Smiths Falls, Ontario and selling the building back to its original owner, Hershey Canada.

In a news release on Aug. 17, the Canadian cannabis producer announced that it has entered into an agreement to sell its facility at 1 Hershey Drive to the chocolate maker for approximately $53 million.

“We are pleased to have reached an agreement with Hershey on this important sale. This is the latest milestone in our focused effort to reduce costs and further enhance our balance sheet,” CEO David Klein said in the release.

“Each of the steps we have taken as part of our transformation to a simplified, asset-light operating model supports our ability to deliver in-demand products from brands our customers love, with greater agility and less execution risk.”

The sale comes just months after Canopy announced plans to eliminate 800 jobs in February.

The former chocolate factory has served as the company’s corporate headquarters since 2013. Once the transaction is complete, it will become the seventh property that Canopy has sold since April 1.

The company added that it will “retain its Smiths Falls-based post-harvest manufacturing facility.”

According to LinkedIn, Canopy employs a total workforce of more than 920 people.

Major layoffs continue

Canopy’s decision to sell its Smiths Falls facility back to Hershey comes amid a flurry of layoffs in 2023.

Major North American companies, including SecureWorks, Rapid7, Dell, Telus, Amazon, Microsoft, Rogers, Ritual, and Meta, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

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Rights when facilities are closed

The closure of an office or facility can impact non-unionized employees in Canada in a variety of ways:

• Termination with full severance pay: If a non-unionized employee loses their job because their workplace is closed, their employer must provide them with a full severance package. Proper compensation can be as much as 24 months’ pay, depending on various factors. However, it can also consist of working notice.
• Relocation to a new workplace: An employer may decide to move non-unionized workers to a new location. This is something a company can’t do if the change makes the commute longer or more difficult for an employee. In this situation, workers might be able to pursue full severance pay through a constructive dismissal claim.
• New job or duties: Companies may give some non-unionized employees new roles or duties if their original job is impacted by a closure. It’s illegal for employers in Canada to make major modifications to the terms of your employment without your consent. If this happens to you, you could have grounds for a constructive dismissal.

If you are a non-unionized employee at Canopy Growth, and your job is affected by layoffs or closures, contact an employment lawyer at Samfiru Tumarkin LLP immediately to find out what your options are.

ADDITIONAL RESOURCES
• Job changes in Ontario: Employee rights
• Can my employer make changes to my job in Alberta?
• Changes to your employment in B.C.: Your rights

Termination agreements for Canopy Growth employees

In Canada, non-unionized employees at Canopy Growth are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

LEARN MORE
• Severance pay for cannabis industry employees
• Rights to severance for provincially regulated employees
• Severance entitlements during mass layoffs

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue a claim for full severance pay.