The owner of Castlegar’s pulp mill is thinking about filing for US bankruptcy protection, Bloomberg News reports.
The news agency only cited “people familiar with the matter” who “asked not to be named because the information is private.”
Bloomberg said the company would likely seek Chapter 11 bankruptcy protection in Texas, though it had not yet made a final decision. If the filing is approved, creditors would take control of the company.
Mercer has reported net losses of $128 million in the first half of this year. The company’s share price stood at 21 cents US on Wednesday, down from about $2 at the end of 2025.
Celgar temporarily closed its log yard and woodroom in July due to poor markets, sidelining 21 employees.
The Castlegar mill has experienced financial difficulty before. In 1998, under a previous owner, it was placed in receivership. Although the mill reopened, it remained under the control of a receiver until Mercer bought it in 2005.
