ELLSWORTH, Maine — A Massachusetts-based lobster company has run into another problem with its checks, but this time it is a bank that is to blame, according to a company official.
Lobster Web Co. LLC, owned and operated by Live Lobster of Chelsea, Mass., found out Friday afternoon that TD Bank has frozen its checking accounts, Lobster Web Vice President Toni Lilienthal said late Monday afternoon. She said the bank had not placed restrictions on Lobster Web’s other financial assets.
Lilienthal, who is based in Jonesport, said the company had enough money in its account to cover all the checks it was issuing late last week to employees and fishermen. She said the company has not been operating since Friday because it doesn’t want to issue checks that the bank will not process.
“That’s what we’re trying to figure out,” Lilienthal said Monday when asked why Lobster Web’s checking system had been frozen. “We’re not taking in lobsters right now because the checks aren’t going through. The money is in the account.”
Last November, Lobster Web bounced multiple checks that were written out to fishermen at various locations along the Maine coast. The latest problem affects all the company’s operations, Lilienthal said.
Last fall, company President Antonio Bussone said the company was adjusting to unfamiliar financial operations associated with its new lobster processing facility in Gouldsboro. Until last summer, when it reopened the former Stinson sardine cannery as a lobster processing plant, Live Lobster had functioned solely as a lobster buyer and distributor, flying live lobsters to Europe and the West Coast within days of the lobster being caught.
With its new processing plant, the company trucks frozen lobster products across the country, a process that takes weeks before the customer gets the delivery. This creates different demands and expectations for inventory and payment, which in turn requires different types of bank financing, Bussone has said.
Attempts Monday to contact Bussone and other Live Lobster officials in Chelsea were unsuccessful.
A spokesperson with TD Bank declined Monday in an email to comment on the situation “in the interest of customer privacy.”
A message left late Monday afternoon for Live Lobster’s attorney, John Sullivan of Concord, N.H., was not returned.
Lilienthal said Live Lobster has been trying to arrange alternate financing through a different lender. She said Live Lobster officials were meeting with bankers Monday afternoon to clear up the situation.
“They’re in meetings right now,” she said. “You can’t be too careful after what happened in November.”
Live Lobster has buying stations in Phippsburg, Rockland, Spruce Head and Stonington. The company employs between 80 and 90 people at its distribution facilities in Maine and Massachusetts, not including its new processing facility.
In the Gouldsboro village of Prospect Harbor, Lobster Web currently employs 10 people, but during the lobster season last summer, it employed 70 people full time at the plant, which operated seven days a week.
Live Lobster has received financial assistance from state and federal agencies in the months leading up to its cash-flow problems.
Live Lobster received federal Community Development Block Grant funding last fall, more than a year after it first sought the town’s approval for the funding. The company received a $200,000 grant and a $200,000 loan to put toward the plant’s renovation and equipment costs.
Gouldsboro selectmen had balked at endorsing Live Lobster’s grant application, which the program requires, because it was concerned about intervening in the area’s competitive lobster dealer market. Dana Rice, chairman of Gouldsboro’s Board of Selectmen and a lobster dealer, abstained from voting on the measure because of his competitive relationship with Live Lobster.
Last year Live Lobster was approved for a $750,000 loan from the Finance Authority of Maine to help fund renovations at the former sardine cannery. Live Lobster officials say the company never received that loan.
Live Lobster bought the plant a year ago from Bumble Bee, which was operating it as the last remaining sardine cannery in the United States.
Bumble Bee closed the cannery and put it up for sale after company officials said federal limits on herring catches made it financially impractical to continue operating the facility.
Follow BDN reporter Bill Trotter (@billtrotter) on Twitter.
Oh my…. something smells a little FISHY here. [the Finance Authority of Maine loaned $750,000 to Live Lobster]
And that is after they got $400,000 of free money from the $200,000 block grant and $200,000 federal funds. I hope this not another spend free money and go bankrupt on loan money. I hope eventually it will be “Maine Open For Business” that will stay and employ people not get in and get out after the monies they can acquire.
But you know it is “another spend free money and go bankrupt” scam.. And so do I…Much like all the green companies Obuma is throwing money at that we read about almost dailey now…
That’s not true and you know it, that is Romney’s MO. We are doing better than we have ever done under a repub who just takes the money much like your governor and then exempts himself from taxes.
My original post to you contained an error.
Sounds exactly like Romney’s Bain Capital. Same exact MO.
Issues with Live Lobster AGAIN? I’m surprised anyone still sells there!
This company was heavily linked to Baldacci and anyone who knew anything about them would never have wanted them to take up business in Maine to begin with.
Being “open for business” is one thing, but being able to do it is another, Govenah.
LePage took credit for this deal, so can we have the TEA Party’s permission to place any blame due with him, too, please.
Where were you when all of the meetings were taking place in Gouldsboro? Baldacci’s man couldn’t get this deal done fast enough to put a feather in the Dems. cap. Don’t blame Governor LePage for this mess which is just starting to unfold. There is a lot more to follow. This is liberal Maine politics at its best. I wonder if Bussone will start to manufacture solar pannels next.
Im sorry you are wrong, Governor Baldacci took credit for this deal and it happened on his watch, the last loan from FAME did happen while LePage was governor. However isnt FAME one of those quasi-state agencies that LePage is trying to get total state control over much to the chagrin of his opponents.
The two people who liked this obviously cannot bother to find out the real story for themselves. This was a Baldacci deal from start to finish with his staff leaning on Gouldsboro hard to get on board.
Anybody who ever worked for a living, ran a business or even had a personal checking account knows that if the bank freezes your checks, something is wrong.
And it’s likely not just a misunderstanding. Things that simple don’t happen in the real world.
Banks that put up huge amounts of other peoples money for commercial investments don’t generally benefit from negative news reports about those investments. Something is wrong here.
Yes it brings to mind things like fraud, bankruptcy or default on loans.
Before shouting fraud, which has become a become a right wing wing knee jerk reaction,
that is a lot like those dang black helicopters, emotionally satisfying, I’m sure, but meaningless
without evidence , which in the case of fraud is at least some indictments, if not convictions, explain how your notion of fraud works, please.
So “Anybody who ever worked for a living, ran a business or even had a personal checking account knows that if the bank freezes your checks, something is wrong.” and most likely it
having used up, maxed out, your line of credit.
Now, what ” Anybody who ever worked for a living, ran a business or even had a personal checking account knows. ” that a is very serious business planning/management issue.
Why that matters is because it goes to a pattern relative to all of this Administration’s deals done in their huge rush, and with handshakes, but clearly not much business sense, nor proper vetting, to show how easy it is be “open for business”
… but the end of the day, this is going hurt those lobstermen who sell to these big outta State operators, first, then all of Maine’s lobsterman’s income, as it drives down prices, even as their fuel costs at a record highs. .
How is that good business for the State of Maine ?
Is that somewhere to look for some fraud, too, or not, Chef ?
I hope that the independent lobstermen have not signed contracts to only sell
to these outta State, slick, corporate operators.
Well when you know as much about Live Lobster as I dothen you wouldnt have much of a problem using the word fraud either.
Live Lobster was invited into this state by Governor Baldacci in preference over another company that was already established in this State.
I don’t know- they just froze the Vatacans acounts
That is pure economics.
The world market demand for what they sell is way down,
especially among woman and children.
Must be a bank error, for these folks at Live Lobster are clearly cash flow gurus.
What’s that? You mean it takes longer to collect from a trucked product delivery than from an air delivery? Well, hotdamn who would have known that?
The bigger question is who did NOT know that, and why not ?
You just knew that was coming.
So the price of Lobster is going up probably, in the interim anyway.
Eat haddock..its better for you!
“So the price of Lobster is going up probably, in the interim anyway. ”
Only in the sadly warped mind of someone whose understanding of basic economics
allows him to be a Bush-fan.
The price to all of Maine’s lobstermen is going to fall for their landed catch, if the major, new, big outta State , corporate buyer is no longer buying, you dolt.
The law of supply and demand does not compromise.
This, even while their fuel costs are at a record high.
Why do Bush fans hate hard working Mainers ?
Something fishy going on here. I’m no reporter but a banking error involving a private sector business doesn’t usually make front page…usually. My guess is in about a week we are going to learn something many speculate.
Might be time for some HONEST Mainers to set up shop across the street and give the fishermen an alternative place to sell their catch. One that actually issues GOOD checks.
Perhaps Linda Bean’s waiting for him to go belly up before she swoops in. At least her checks aren’t likely to be rubber.
Checks might be good. But she’s no longer processing. Laid off 40 people! Not sure she knows what’s she’s doing.
Just another example of the Failed Baldacci regime of cronyism, smoke and mirror accounting, and outright theft of taxpayer monies.
Got details or just emotional fault finding.
Don’t I remember, Gov. Le Page taking credit for this deal when the plant reopened ?
You remember wrong.
Other people’s money has run out.
this company has been bad business from the beginning…and its no surprise that BDN dropped the ball on this story…It’s been all over the internet SINCE SATURDAY! why is it the paper is just now running a story…better late than never?! this newspaper is a joke…
And yet…you read.
Elementary Mr. Watson, It seems you were correct.
Just an FYI for your company, there are NO fiber optics in ME, they are still wiring. If you think you can use EDI or transfer between accounts like in MA, you are really wrong. I have stuff post on a Friday and the money doesn’t come out til Monday, tell me I haven’t overdrawn my account. You’re not in MA anymore, there will be no current technology. Lag time is pathetic, that’s why they get double postings. It’s like 1970 all over again.
What are you talking about?
Oxford Networks (Lewiston based Co.) has a large fiber optic netwrok that streches from boston to bangor and many cities and towns in between, but being a ‘Mainer’ I am sure you already knew that.
Haven’t been to Downeast have you? In Massachusetts North, you have all the amenities. Our taxes above Augusta sure don’t come here. But I’m sure you already knew that being a ‘riverdriver”
Doesn’t that only cover “Casino’s”!
Have you ever seen someone wearing those “smart guy” glasses that you could trust?
OU812?
If in fact there is “money in the accounts” why are the boats who have sold him bait for his business, still waiting for their money?? Big money too!!! I am a Lobster man from Deer Isle/ Stonington and think he should be keel hauled all the way back to Mass!!We are struggling enough with the price of bait , fuel and regulations that are passed by some fat, cigar smoking politician who has never even been on a boat but feels like he is an expert on MY business!!! This is the second time that good ol’ Antonio has pulled this “it is someone else’s’ fault crap!!! Most lobster dealers hold out $$ from the daily price per pound for each lobster that we sell and after they sell the lobsters (either monthly or in the spring if they were kept in a lobster pound), the dealers pay a ‘bonus’ to the fishermen. This really isn’t a bonus as it is really the fisherman’s money in the first place!! The dealers simply cover their operating cost this way. The live lobster business in Stonington told the fishermen that they would pay a bonus and held out the money per pound but PAID NO BONUS!!! Antonio Bussone is a thief and must be removed from Maine!!!
what i dont understand is why the paper never reports about the numerous lawsuits this ponzi scam man known as antonio bussone has against him he is being sued by his bussiness partner for cutting him out and taking all the money and also he owes several bait dealers hundreds of thousands of dollars … i smell a fire sale and him packing up and going back to his homeland bye bye antonio ding frys are done
He has no less than 17 corporations in his name can you spell kiting?
3 things for certain.
1. Bush’s Fault
2. LePage’s Fault
3. Jeff Gordon’s Fault.
It’s true, ask anyone.
Bush fan, I’m sure it’s Kyle’s fault…. Shame on you !!! ROTF………
I give you a like.
It is important to encourage you once you finally get something right.
Your welcome.
So where is the all the fraud in this, one, Bushfan ?
i knew you would come around.
I think you can safely take Bush and Gordon off the list.
Smells like ‘bad fish’ to me…
my personal favorite is they say there is money in the account then why cant they pay the 7 plus thousand they owe in back rent and power bills to the city of rockland for them using the fish pier. once again i say bye bye antonio and manny his maine operations manager ding fries are done
WOW 7 thousand. I remember when there wasn’t anyone on the fish peir. And old ones that were there were a lot worse then that weren’t they TUG?
This business has been a scam since day one and would have failed long ago if it were not up to the lax oversight of lending institutions. He employed professional grant writers, a professor of english at UMO to do press releases and lived by the bad business theory of buy high and sell low. All seemed good as long as the cash flow kept up just like any other ponzi scheme. A whole lot will be coming to light in the near future, bait dealers, suppliers of many kinds, fisherman, and even other lobster dealers not paid and won’t be. Greed has taken its toll on the coast of Maine.
We all know what it was like in Stonington/Deer Isle before Antonio came to town. And the breakfast club met every morning to decide how much they were going to pay for lobsters. And we were the lowest paid lobstermen in the state of Maine. The price of lobster has only gotten better since Antonio came to town. And we all know if he goes so will the competive prices. And we will most likely go back to the lowest prices.
I can’t see how this company could ever get replacement financing. Their track record seems to indicate that they wait for the explosion before disarming the bomb.
Gotta support those folks who are owed money in this situation and hope for the best.
mr trotter was is nobody looking into the criminal aspect of this …. a bank just doesnt freeze your accounts unless there is something seriously wrong and most likely criminal please get to the bottom of this and also what have they really used the fame loans for is the real question