Reitmans exits court protection after 20 months; pays $95 million to creditors

Photo: The Canadian Press

A Reitman's clothing store is seen next to an Aldo shoe store at an outdoor mall Tuesday May 19, 2020 in Montreal.THE CANADIAN PRESS/Ryan Remiorz

Reitmans (Canada) Ltd. says it has paid creditors $95 million as it exits creditor protection after about 20 months.

The Montreal-based company says it has paid court-appointed monitor Ernst & Young Inc. to distribute funds to creditors according to the plan of arrangement.

A list of known creditors as of September 2020, posted online by the monitor, shows Reitmans owed a total of $192,656,167 at that time.

The company says it has also obtained a credit facility for up to $115 million from the Bank of Montreal.

The funds will be used to pay creditors, for working capital and other purposes including new store openings and renovations.

Reitmans filed for creditor protection and obtained an initial order under the Companies' Creditors Arrangement Act in May 2020.

The women's clothing retailer operates 412 stores consisting of 241 Reitmans, 93 Penningtons and 78 RW&CO.