Dylex Limited (“Dylex”), a publicly listed company, was a retailer of women’s casual wear which controlled approximately 500 retail outlets across Canada, operating under various banners including “Fairweather” and “BiWay”.
As interim receiver appointed by the Court and Trustee in Bankruptcy, we operated BiWay’s business through the fall season. We dealt with, among other things, all aspects of arranging for the delivery of goods on order from overseas suppliers. We also conducted a sale process leading to a going-concern sale of the Fairweather chain.
In addition to operational matters, we completed a forensic investigation which revealed irregularities in Dylex’s accounting records, negotiated a settlement with both the inventory liquidation agent it had appointed and Dylex’s lender and commenced legal actions against Dylex’s directors and others for inappropriate transactions undertaken in the months preceding bankruptcy. Creditors received approximately 71% of their claims.