Desmond Blades, chairman of the Mussons group, says he bought the Highgate trademark two years ago. - FILE

Receiver Ken Tomlinson has shut down the Highgate Foods chocolate factory, putting 100 full and part-time staff out of work, and is now in the process of trying to value the assets of the debt-burdened company, Wednesday Business has learned.

The shutdown came three working days behind Tomlinson's announced appointment as receiver/manager by Jamaica Redevelop-ment Foundation (JRF), which owns the debts of the confectionery as part of the portfolio it bought from Finsac.

"Some of the workers were not paid for weeks," said informed sources. "The company has no working capital."

Tomlinson is attempting to sell the company or its assets, but will liquidate if he does not find a buyer.

Yesterday, the Mussons Jamaica group, one of the companies that Highgate is indebted to, indicated that it has not discounted the option of acquiring the confectionery company, but chairman Desmond Blades told Wednesday Business that the decision would ride on discussions he plans to have with the receiver.

"I see he's called me. When I talk to him, we'll see," said Blades, refusing any comment on what he might consider a good price. "That's private business," he said.

But sources say Blades' grandson Paul Scott, who is with Facey Commodity (a unit of the family business) has already made contact with Tomlinson and JRF, and has floored them with a claim that Mussons owns the Highgate trademark.

The debt collectors have called in their lawyers to investigate whether Mussons ownership is legal and irreversible, but yesterday Blades was confident he would triumph.

"They can't dispute it," he said. "We have all the documentation."

The Mussons chairman said he bought the trademark from owner Claude Clarke two years ago, but refused to name the price he paid.

Untestable claim

Last night, sources with inside knowledge said Blades claim would be untestable only if he had bought the trademark before 1992 and with the permission of former denture holders over Highgate's debts, National Commercial Bank.

Tomlinson has already briefed JRF's attorney and was shaping to battle for the brand, Wednesday Business was advised.

As JRF moves to sort out the trademark claim, the receiver is also making feverish attempts to establish the full extent of Highgate Food Product's indebtedness after 30 years of ownership by Clarke, a former government minister in charge of commerce.

The factory sits on about two acres of land in St. Mary and has been a main source of direct employment as well as buyer from local producers.

Wednesday Business understands that political pressure had been put on JRF, run by American Janet Farrow, and before her Denis Joslin, for the debt collector to allow Clarke time to bring the business around, largely because of the company's economic importance to St. Mary.

But despite an initial restructuring by Finsac, under which its more than $200 million of debt was refinanced and reduced, Highgate is said to be at least $100 million in debt and was taken over by JRF in mid-September after it became clear that the company could not pay its creditors nor service its loans.

Clarke, in a last-ditch attempt to stave off JRF, had attempted to broker a deal with the Mussons group to build out new regional markets for Highgate, and with it create new revenue streams for the cash-hungry chocolate maker - announcing that a joint venture deal was close to conclusion with Blades, under which Mussons would come in as a 'financial partner'.

Yesterday, Blades, who had not commented on the press release, said at the time Clarke made the announcement, their discussions had been "casual."

But the Mussons boss, who said he has been in business with Highgate "for a long time" seemed not to hold Clarke's tactics against him.

"I know why he did it," said Blades. "He was trying to stop what happened from occurring," he said, referring to the JRF take over of the company.

lavern.clarke@gleanerjm.com