Sunday, May 24th14.1°C
25936
26398

Bombay, Bowring under court protection while looking for solution to debt problem

TORONTO - Retailers Bombay & Co. Inc., Bowring & Co. Inc. and Benix & Co. Inc. are operating under court protection from creditors while their owners look for a buyer or partner to help them survive a severe cash shortage and overwhelming debt.

Bombay has 55 furnishings stores and Bowring has 57 housewares stores across Canada, employing about 1,240 people in total. Benix closed its final store in June.

The retailers collectively owe about $80-million, including $14.5 million to CIBC (TSX:CM), which is providing funds to help them keep operating while they work on a new business plan under court supervision.

An Ontario Superior Court judge granted a stay until Sept. 5 last week under the Companies' Creditors Arrangement Act, which is designed to give insolvent companies another chance to come up with a workable business plan.

In an affidavit filed Aug. 6, CEO Freddy Benitah testified that the privately owned chains have been grappling with a a liquidity crisis and have defaulted on other financial covenants with their primary lender, CIBC.

The companies also ow $28.5-million to Isacc Bennet Sales Agencies Inc. and $11-million FBI, which are secured creditors, and an estimated $25-million in unsecured debts.

The trio of Canadian retailers have struggled in the face of growing competition from U.S.-owned rivals that have migrated north.

The Benitah family also privately owns the Fairweather and International Clothiers chains.

The Canadian Press


Read more Business News

24910


Recent Trending




Today's Market
S&P TSX15200.76-2.85
S&P CDNX703.48+2.97
DJIA18232.02-53.72
Nasdaq5089.36-1.43
S&P 5002126.06-4.76
CDN Dollar0.8137+0.0004
Gold1204.30+1.30
Oil57.45-1.98
Lumber273.80+3.70
Natural Gas2.887-0.064

 
Okanagan Companies
Pacific Safety0.13-0.01
Knighthawk0.010.00
QHR Technologies Inc1.48+0.03
Cantex0.03-0.01
Anavex Life Sciences0.425+0.053
Metalex Ventures0.09+0.01
Russel Metals25.79-0.03
Copper Mountain Mining1.38-0.03
Colorado Resources0.105+0.005
ReliaBrand Inc0.0048-0.0049
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.175-0.010
Decisive Dividend Corporation2.20+0.60

 



26361

FEATURED Property
229454316 - 2425 Mt. Baldy Dr.
3 bedrooms 3 baths
$409,500
more details
image2image2image2
Click here to feature your property
Please wait... loading


Do or do not

Photo: Thinkstock.com“The optimist sees the rose and not its thorns; the pessimist stares at the thorns, oblivious of the rose.” - Kahlil Gibran Good planning is all about managing chan...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...


Squaring the circle

Photo: Thinkstock.comI have been reading about market segmentation and choice. Howard Moskowitz’s research into tomato sauce as retold by Malcom Gladwell on the TED talks (http://www.ted.com/tal...

_





26418


Member of BC Press Council


25479