Grocery Gateway Inc. (“Grocery Gateway”) was an internet-based full service grocery shopping and delivery service that operated in southern Ontario from a large distribution facility in Downsview Park.
We were retained by Grocery Gateway’s lenders and shareholders to consider the viability of the business under different scenarios. In that capacity we prepared financial models to consider a restructuring based on reducing Grocery Gateway’s delivery radius and changes to its product mix. Given its high fixed costs and capital requirements to restructure the business, we developed a solution which led to the sale of Grocery Gateway’s business to a strategic competitor. The transaction was implemented pursuant to proceedings where we were appointed as both Proposal Trustee and Interim Receiver. The transaction included the shares of Grocery Gateway, thereby preserving tax loss carry forwards and maximizing creditor recoveries.