Fraser Valley/Montreal (CNW Telbec) – Reitmans (Canada) Limited announced that it is seeking protection under the Companies’ Creditors Arrangement Act in order to facilitate its operational, commercial and financial restructuring. Application under the CCAA will be heard by the Québec Superior Court Tuesday.
It is the latest company to feel the strain of the COVID-19 pandemic. Ironically this comes as many stores and services move to “phase 2” to slowly open with socvial distancing and other safety measures in place.
Reitmans has stores in West Oaks Mall in Abbotsford and Chilliwack Mall.
Reitmans’ Board of Directors, in a unanimous decision and after having extensively considered other alternatives and a number of factors, authorized the Company to seek protection under the CCAA as the best alternative for the long-term interests of the Company, its employees, customers, creditors and other stakeholders.
Interim Financing (DIP)
In conjunction with its filing under the CCAA, the Company has undertaken a process to secure an interim financing (DIP) that shall provide the required liquidity to meet all of the anticipated needs of Reitmans and its brands to continue normal operations following the opening of its retail locations and throughout the CCAA process.
Exit Financing
Reitmans is also in discussion with lenders with respect to a permanent financing upon exit from the restructuring process.
