Wednesday, September 2nd17.4°C
26775
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

27613


Recent Trending




Today's Market
S&P TSX13534.12+52.22
S&P CDNX550.16+2.19
DJIA16221.10+162.75
Nasdaq4701.11+65.00
S&P 5001932.81+18.96
CDN Dollar0.7534-0.0011
Gold1133.10-5.60
Oil45.44+0.03
Lumber235.70+0.70
Natural Gas2.652-0.050

 
Okanagan Companies
Pacific Safety0.21+0.03
Knighthawk0.010.00
QHR Technologies Inc1.19+0.01
Cantex0.04-0.01
Anavex Life Sciences1.25-0.07
Metalex Ventures0.05-0.00
Russel Metals21.10-0.11
Copper Mountain Mining0.60-0.02
Colorado Resources0.075-0.010
ReliaBrand Inc0.0045+0.0005
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.08-0.01
Decisive Dividend Corp2.62+0.12

 



27126

FEATURED Property
23501891114 Oswell Drive
3 bedrooms 3 baths
$594,800
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_








Member of BC Press Council


27074