Modasuite Inc. a Montreal, Quebec-based business doing business as Frank and Oak, filed an NOI on June 22, 2020, listing approximately $19.0 million in liabilities, including approximately 6.0 million to Desjardins. Founded in 2012, the company operates primarily as an online clothing retailer, though it also operates 22 retail locations across Canada. While under creditor protection, the company will run a sales and investment solicitation process, led by Stifel Nicolaus Canada Inc. KPMG is the proposal trustee. Counsel is Osler for the company, Norton Rose Fulbright for the proposal trustee and McCarthy Tétrault for Desjardins.
Coalision Inc., a Montreal, Quebec-based designer and developer of lifestyle and performance apparel, including activewear brand Lolë, filed an NOI on May 26, listing approximately $17.2 million in liabilities to CIBC and $15.3 million to Simon Coalision Investment Inc. Founded in 1989, the company recorded significant losses for the last several years, which have primarily been caused by a general downturn in the global retail clothing market; competition from other established and emerging clothing retailers; shifts in consumer habits; and excess inventory. The COVID-19 pandemic and closure of all the Lolë stores had a further detrimental impact on the company's business and revenues. Deloitte is the proposal trustee. Counsel is McCarthy Tétrault for the company and Fishman Flanz Meland Paquin for CIBC.
Sail Plein Air Inc./Sail Outdoors Inc., a Montreal, Quebec-based outdoor sports retailer, filed an NOI on June 2, listing approximately $133.9 million in liabilities, including $58.9 million to Wells Fargo, $4.9 million to Columbia Sportswear Canada, $1.0 million to Nike Canada, $1.1 million to Patagonia, and $1.8 million to The North Face. The company, which employs almost 1,800 people, cites recent upheavals in the retail industry and the COVID-19 pandemic for its financial difficulties. EY is the proposal trustee. Counsel is Dentons for the proposal trustee, Lavery for the company and Norton Rose Fulbright for Wells Fargo.
Metric Modular, an Agassiz, British Columbia-based modular construction company, filed an NOI on June 1, listing approximately $14.7 million in liabilities, including $9.3 million to ATB Financial. The company attributed its financial difficulties to the significant decline in sales volume over the past several years, which caused financial losses to accumulate. Based on historical performance and future trends, the company's forecasted future losses are too significant to be supported by its available cash flow. Grant Thornton is the proposal trustee.
Tribalscale Inc., a Toronto, Ontario-based technology company that provides customized enterprise software services to Canadian and American companies, filed an NOI on May 19, listing approximately $5.8 million in liabilities, including $2.5 million to 1924191 Ontario Inc. The company experienced early success when it started its business in 2015. However, it attributes its current financial difficulties primarily to a slowdown in receipt of new contracts in 2019 and a delay in collections from certain existing customers due to disputes, coupled with high operating and payroll expenses. The COVID-19 pandemic further reduced the spending power of the company's existing and prospective customers. Prior to filing the NOI, the company had made certain operational changes as part of a restructuring to address its liquidity challenges., including reducing its employee headcount. In addition, between the summer of 2019 and spring of 2020, the company was in discussions with various potential purchasers which culminated in a potential deal to sell its going concern business. Due to COVID-19, however, the potential purchaser opted not to close the transaction. MNP is the proposal trustee. Counsel is Weisz Fell Kour for the company, BLG for the proposal trustee, and GSNH for 192 Ontario.
Muskoka Grown, a Bracebridge, Ontario-based craft cannabis company, filed an NOI on May 5, listing approximately $15.5 million in liabilities, including $2.2 million to RBC. The company, which has been cash flow negative since its inception, is currently operating at unsustainable monthly losses and has reached the limit of its revolving operating loan with RBC. In addition, the lack of brick-and-mortar stores in Ontario as a result of the COVID-19 pandemic hindered up-front sales from the Ontario Cannabis Store and led to the company needing to sell its cannabis through the wholesale market at lower margins. Based on cash availability, the company is currently unable to pay for the testing and certification required to sell dried cannabis; pay its employees; and fund general overhead expenses of the business. Without additional funding and protection from its creditors, the company will have no choice but to immediately cease operations. Arthur Zwingenberger, owed approximately $5.2 million in outstanding mortgage loan principal and interest, supports the NOI proceeding and has agreed to provide up to $4.0 million in DIP financing to the company. Farber is the proposal trustee. Bennett Jones is counsel to the company.
Atlantica Content Studios Inc., a Markham, Ontario-based company that provides retail clients with creation, design, photography, and production of digital and traditional creative content, including online content and traditional print flyers, filed an NOI on April 24, listing $2.5 million in liabilities. The COVID-19 shutdown of non-essential services resulted in a dramatic decrease in weekly sale flyer production and distribution and a corresponding reduction in retail customer’s requirement for new and creative sales content. Accordingly, major retail customers cancelled their contracts with the company, causing it significant cash flow constraints and financial difficulties. BDO is the proposal trustee. Counsel is Keyser Mason Ball for the company.
Cranbrook Glen Enterprises Ltd., which operates as the camera and accessories retailer Henry's, filed an NOI on May 1, listing approximately $24.0 million in liabilities, including $14.8 million to BMO. With all 30 of the Henry’s retail locations temporarily closed as a result of COVID-19, the company has seen a significant impact to its sales. While its e-commerce operations remain, Henry’s intends to close seven of its stores during this restructuring and reopen the remaining 23 stores once COVID-19 measures are lifted. Grant Thornton is the proposal trustee. Counsel is Loopstra Nixon for the company and McCarthy Tétrault for BMO.
Foodora Inc., the Canadian subsidiary of Delivery Hero SE and an online food-delivery service company that has operations in Ontario, Quebec, Alberta and British Columbia, filed an NOI on April 27, listing approximately $4.7 million in liabilities, with the vast majority of money owed to restaurants. The company, which intends to continue to operate until May 11, is working on a proposal to make to its employees and other creditors. Earlier this year, the Ontario Labour Relations Board ruled that Foodora couriers were dependent contractors and had the right to form a union. Grant Thornton is the proposal trustee. Blakes is general counsel for the company and Dentons is counsel for the company relating to employment matters.
One Ocean Expeditions Inc., a Squamish, British Columbia-based polar cruise company that charters small-ship travel to Antarctica, the Arctic, Atlantic Canada and other locations, filed an NOI on April 17, listing approximately $29.5 million in liabilities, including $1.5 million to Swoop Travel and $2.8 million to Export Development Canada. The current global pandemic has disrupted the company's ongoing efforts to restructure and reposition since the Russian government unexpectedly cancelled leases on two of its ships last year. PwC is the proposal trustee.