Bentley & Co. Ltd., NOI

Bentley & Co. Ltd., a retailer selling luggage, handbags and leather goods across Canada, filed an NOI on July 17 listing $26 million in liabilities, including approximately $8.8 million in secured debt to HUK 89 Limited.

The company operates more than 140 retail stores and employs more than 700 employees across the country, including 70 at its head office.

The company had previously filed an NOI in 2008 and filed again in 2019, at which time it was acquired by HUK 94 Limited, a subsidiary of turnaround specialist Hilco Capital. Despite Hilco’s significant investment in Bentley, sales have fallen short of expectations in recent years and the business has been facing serious liquidity constraints.

In late 2023 and early 2024, Bentley was the target of two ransomware attacks that compromised its systems and caused it significant financial losses. Furthermore, the company has been unable to maintain profitability in the long-term since the pandemic, in part due to consumer preference for online shopping, which has made it difficult for Bentley to remain profitable while operating more than 140 stores.

The purpose of the NOI proceedings is to consummate a sale to a company owned by Paul Nassar, a well-experienced player in the Canadian retail market who owns the Hart chain, which has approximately 130 locations in Canada, and recently acquired the Korvette chain, a prominent player in the Quebec retail market with approximately 60 stores and 600 employees in Quebec.

Raymond Chabot is the proposal trustee.

Counsel is Davies for Bentley.