Salgreen Investments Limited and Robgreen Investments Limited (“Green”) operated a chain of 19 women’s apparel stores in southern Ontario under the “City Smarts” and “Stefi Lara” banners. Green employed approximately 120 individuals.
Green’s performance deteriorated due to competition from national retailers and big box stores. The senior lender approached us to develop a restructuring process to preserve all or part of the business and to wind down the remaining unprofitable locations.
As Trustee in Bankruptcy and Receiver appointed by the senior secured creditor, we negotiated on an expedited basis an agency agreement for the sale of inventory, the terms of which were accepted by Green’s landlords and approved by the Court. We subsequently carried out a sale process which resulted in the assignment of 10 of the premises to a newly-established private retailer.