TravelBrands Inc. (“TBI”) is a leading Canadian operator of wholesale travel services and retail travel agencies under various banners. TBI is an indirect subsidiary of Red Label Vacations Inc. Pursuant to an agreement (“Agreement”) between TBI and Sears Canada Inc. (“Sears”), TBI operates a Canadian retail online and store–front travel agency business under the “Sears Travel” brand, which includes 88 retail outlets in Sears store locations.
On May 27, 2015, TBI filed for creditor protection under the Companies’ Creditors Arrangement Act, citing its obligations under the Agreement as a main cause of its financial difficulties.
We were engaged by a major stakeholder to assess a portion of the TBI business, including its financial projections, quality of earnings and cost structure. As part of our mandate, we identified cost-cutting opportunities and advised our client on all aspects of its negotiations with TBI related to a revised Agreement. Our client and TBI entered into a revised Agreement that will allow its relationship with TBI to continue.