Monday, August 3rd28.3°C
26264
26096

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




Recent Trending




Today's Market
S&P TSX14468.44+85.68
S&P CDNX594.31+6.01
DJIA17532.29-157.57
Nasdaq5098.26-30.02
S&P 5002089.48-14.36
CDN Dollar0.7605-0.0038
Gold1096.90+0.60
Oil45.61-1.92
Lumber260.80+8.70
Natural Gas2.883+0.062

 
Okanagan Companies
Pacific Safety0.17-0.01
Knighthawk0.010.00
QHR Technologies Inc1.42+0.00
Cantex0.035-0.005
Anavex Life Sciences1.09+0.18
Metalex Ventures0.05+0.00
Russel Metals19.40-0.05
Copper Mountain Mining0.79+0.01
Colorado Resources0.065+0.005
ReliaBrand Inc0.0049+0.0004
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.095-0.045
Decisive Dividend Corp2.55+0.05

 



25386

FEATURED Property
18437353998 hwy 97 north
$2,300,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Mortgage policy changes?

There are rumours circulating again that the federal government may move to tighten mortgage insurance criteria. This is prompted by a recent article in the Financial Post. The housing market while b...


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...

_



26376

26376


Member of BC Press Council


26680