Live Lobster Moves Processing Plans Ahead at Prospect Harbor

by Brenda Tredwell

Plans for a new lobster processing plant at Prospect Harbor, Maine have met with further delays. After twists and turns over several months delays on January14 stalled the closing for several more weeks.

Legal snags had prevented Live Lobster Co. of Chelsea, Massachusetts, from obtaining a $750,000 loan from TD Bank in November. Antonio Bussone, owner of Live Lobster, still planned to close the deal on the former Stinson cannery in Prospect Harbor, Gouldsboro by January 14, and establish his business.

On January 16, Bussone said, “The attorneys were not able to finalize all documents required. We are ready to close as soon as they will tender us all documents. Financing is in place and we are very excited about this.”

Anticipating success, he spoke of improvement plans at Prospect Harbor which will include a 160,000-pound capacity live storage tank and a 250,000-pound capacity bait cooler. Live Lobster currently employs 80 to 90 workers at several Maine buying stations, 30 workers at the East Boston headquarters, and four workers at their Gloucester, Mass., buying station. “Live Lobster (Gouldsboro) will start with live lobsters and bait at full strength, hopefully by May,” projected Bussone. “By summer, we could have 30 - 40 employees.”

“Al West has worked for a few months in the bait division, Peter Colson has worked a deal with Bumble Bee, where, immediately after the closing, he will work with us. Diana Young, formerly in charge of accounting at (Bumble Bee) will also be back in Prospect Harbor,“ said Bussone.“By next spring, lobster processing should begin on a very limited capacity.”

Emphasizing that plans will proceed one step at a time, by focusing on goals while concurrently running a competitive business, Bussone added, “We don’t need to start going at 100 miles per hour.”

After setbacks in September, Bussone explained, “Our resources are limited and we have to pick our battles; I wish we had more support, or at least some support from the town. We will start on our own…. In between the workers that we will hire and the increased competition for the local lobsters, the fishing community will enjoy a very positive impact in 2011.”

With a packaging facility in East Boston and headquarters neighboring Logan International Airport, Bussone’s blueprint for a future lobster processing plant includes a fleet of corporate trucks, garage service, shipping and packaging operations, processing equipment.

Since making his $1.55 million offer on Stinson’s ( valued at $5 million) and entering into negotiations with Bumble Bee Foods, LLC —recently purchased by Lion Capital, LLC, of England—Bussone admits, it’s been a rough haul.

Complications existed

When Stinson’s closed (April 18, 2010) there was a consent decree, inherited by parent corporation, Bumble Bee, from Connor Bros., LLC of Canada. Connor Bros. agreed to invest $12 million into Stinson’s and continue processing herring “for the indefinite, long-term future.” The decree, set to expire June 30, 2012, was signed by Maine’s Attorney General. Stinson’s closed. The packing and processing equipment from the last US sardine factory was transported to a facility owned by Bumble Bee subsidiary, Connors Bros., in Blacks Harbour, New Brunswick. After Live Lobster made an offer, speculation grew.

Cuttings supplied by Stinson were a reliable herring source for the lobster bait industry. The sale of the Stinson site does not include access to herring quota, or the abutting wharf. Traditionally, the lobster industry has been comprised of many small businesses keeping the coast wide price in check, avoiding large scale consolidation—as witnessed in the sardine industry. Fueling the tension, Governor Baldacci’s office waved off local concerns as “background noise,” saying “the pot is being stirred by disgruntled parties who were interested in the property, but did not come forward to buy it.”

In September, Bussone commented, “Without the help of local fishermen, dealers, co-ops and so on, this is not going to happen. However, to be able to establish the largest and most advanced processing plant in Gouldsboro, is a goal that keeps my adrenaline running very high.”

Legal issues

Live Lobster Co. was established in 2001, by Bussone and seafood importer, Allessandro Verrini of Italy. Former business partner, Alan Brown of New Mexico still holds (or held, it remains a question) 30 percent interest in the company. Brown, former General Manager of Live Lobster, was hired in 2003, and then fired in 2009, claims that his experience in the lobster business built Live Lobster from a $20 million company to $50 million operation, then, he was edged out. For Brown, liability issues remained. He brought Bussone, Verrini and their corporate entities to court. Court documents listed the following entities: Live Lobster Co., Inc., F/V DUCHESS II, Inc., DECAPOD, Inc., Perishable Packaging, Inc., Charter Seafood, Inc., ABABAV, Inc., 3156334 Nova Scotia Limited (aka Cape Breton Live Lobster Co.) Kennebunk Lobster Co. LLC, Bait Man Co., LLC, Stonington Real Estate LLC, Atlantic Lobster Co. LLC, Boston Lobster Co. LLC, Knox Lobster Co. LLC, New England Lobster Co. LLC, Phippsburg Lobster Co. LLC, Rockland Lobster Co. LLC, and Lobster Web Co.

In addition, with the November 30 closing date on Stinson’s days away, US District Court Judge Nathaniel Gorton prohibited Bussone (a 30 percent partner), Verrini (a 40 percent partner) or their business entities from tapping the company’s credit line through TD Bank for a $750,000 loan to purchase the Stinson property. On December 30, 2011, both sides dropped the case.

Bussone remains confident, stating that neither the aforementioned legal issue, or financing, caused the delay. Regarding the proposed Gouldsboro facility, Bussone said, “I’m extremely proud of this, I’m bringing my family down to (Stinson’s) and show them what all this was about… I think it will be part of our future.”

Fishermen, area residents, and lobster dealers regionally have expressed uncertainty about how they will be affected by what happens at the Prospect Harbor plant. Some point to the number of entities under the Live Lobster umbrella and wonder whether that says something about the possible outcome.

Others wonder how financial ties to London, based Lion Capital, LLC may effect Maine’s most important fishery.