August 2, 2019
Davids Footwear, a Toronto, Ontario-based luxury women’s shoe retailer, was placed in receivership on August 2 on application by Rosejack Investments, owed approximately $9.0 million. With a history dating back to 1954, the company has historically been profitable but, like many other footwear retailers, it has faced challenges in recent years. Rosejack, a company affiliated with menswear retailer, Harry Rosen, acquired the company in 2017 with plans to add stores across the country. The expansion never took place though, and the company's most recent financial statements indicated a loss of almost $1.0 million. The company attempted to seek rent concessions from the landlords of its Mink Mile and Sherway Gardens locations but was not successful. Additionally, the company recently learned that it would be losing one of its key brands, Valentino, as the footwear supplier has plans to expand its own stores in the company's territory. With all forecasts indicating further losses for a number of years that would require additional cash injections, Rosejack made the decision to seek the appointment of a receiver to effectuate an orderly wind down of the business. Richter was appointed receiver. Counsel is BLG for the applicant and Fasken for the receiver.