Deposit could be trash after garbage truck provider goes bankrupt

The City of Steinbach could be out more than $177,000 after the company that won the tender to provide a new garbage truck declared bankruptcy.

Shu-Pak Equipment Inc. was declared bankrupt on July 18 according to Dodick & Associates, a corporate insolvency and restructuring firm.

Trustees accepted an offer from David Tanner, director and shareholder of Shu-Pak in September to purchase the assets and a proposal on behalf of Shu-Pak to its creditors was presented.

At a strategic priorities committee meeting on Tuesday, Steinbach council heard from Solid Waste Manager Eldon Wallman who said it’s unlikely they will recoup any of the deposit paid.

Terms of the purchase of the $339,000 residential garbage truck approved by council on Sept. 20, 2022, saw the city pay a deposit of $177,975. It was the lowest of two tenders submitted.

Funds for the truck were to be taken from the city’s environmental reserve fund, with some reallocated from a planned truck shop expansion project that had been delayed.

While Wallman said the funds are likely gone, the city continues to try to recoup some of the money.

“The city continues to work with the receiver for Shu-Pak to determine if any of the deposit amount will be recoverable,” Senior Finance Manager Brian Hrehirchuk said in an email.