Sepp's Gourmet Foods Ltd. has sold its Alberta division to Nossack Food Group for an undisclosed sum.
The Delta-based producer of frozen food products will use proceeds from the sale for working capital and to repay senior debt.
The company has been struggling over the past couple of years despite increasing its revenue. Sepp's reported a net loss of $2 million for its fiscal year ending July 31, 2007, up from a net loss of $854,000 in 2006. The increased loss came despite Sepp's revenue rising to $27.8 million from $24.6 million in 2006.
For its fiscal first quarter ending October 31, 2007, the company reported a net loss of $704,000 from revenue of $7.7 million.
Last year, the company failed in its attempt to go private.
Sepp's shares were delisted from the TSX in August 2007. They closed at $0.18 a share August 31, 2007, compared with a 52-week high of $0.62.