June 3, 2020
Comark Holdings Inc., Bootlegger Clothing Inc., cleo fashions Inc. and Ricki's Fashions Inc. (collectively, the "Comark Group"), leading Canadian specialty apparel retailers with a nationally recognized portfolio of exclusive private label brands, obtained protection under the CCAA on June 3, owing approximately $26.4 million to CIBC. A combination of factors have resulted in a severe liquidity crisis for the Comark Group, including the COVID-19 pandemic, a difficult economic environment in Alberta arising from declining oil prices, and a worsening retail environment. Between March and May, the Comark Group lost over $50 million dollars in sales, and in its last fiscal year, it experienced a net operating loss of $7.6 million. Given these financial difficulties, the Comark Group has been unable to pay rent for its retail stores and, as such, has received notices of defaults from its landlords with respect to 56 stores. Without additional funding, the the Comark Group will have no available liquidity after June. Alvarez & Marsal was appointed monitor. Counsel is Osler for the Comark Group, Goodmans for the monitor and BLG for CIBC.