Maine’s Cozy Harbor Seafood Files Chapter 11 Bankruptcy Owes Over $5 Million

On July 1, Portland-based Cozy Harbor Seafood, a prominent lobster processor, filed for Chapter 11 bankruptcy protection amidst mounting debts exceeding $5 million. The company, which has operated since 1980, cited market volatility, COVID-19 disruptions, and trade war impacts as reasons for its financial struggles.

Court filings reveal Cozy Harbor owes $4.9 million on an $8 million loan from KeyBank and $330,000 to Camden National Bank. Additional unsecured creditors include East Coast Seafood ($1.375 million), Louisbourg Seafood ($803,000), and Whitecap International ($342,000). Owner John Norton stated the company explored asset sales and refinancing, but ultimately chose bankruptcy to stabilize its finances and maximize enterprise value.

Founded as a groundfish processor, Cozy Harbor transitioned to lobster in 1993, focusing on frozen and vacuum-packed lobster tails. It expanded into value-added products, exporting to Canada, Asia, and Europe. Despite its success, fluctuating lobster prices and recent U.S. tariff policies created unsustainable pressure on operations.

During restructuring, Cozy Harbor will maintain its Portland facilities, 107 employees, and ongoing customer orders. Norton emphasized that the bankruptcy filing provides a structured path to financial recovery, ensuring the company can continue supporting Maine’s fishermen and coastal communities.

Norton owns 66% of the company, with Joe Donovan (25%) and Joel Knox (9%) as minority shareholders. Despite the challenges, Norton expressed optimism, stating, “This decision allows us to focus on what we do best—processing and selling premium seafood—while creating a foundation for future success, including a potential change in ownership.”