Channel Control Merchants Corporation (“CCM”), which carries on business in Ontario and Alberta as a discount retailer of general merchandise, employing 424 people, and its subsidiary 1000697016 Ontario Inc., filed an NOI on December 9.

The vast majority of CCM’s inventory is supplied by Walmart Canada, which provides merchandise to CCM on consignment. The companies currently owe Walmart approximately $14 million on a secured basis.

The companies have not been profitable and are in the midst of a liquidity crisis. CCM’s US parent, on which CCM is dependent for infrastructure and IT services to carry on business, recently commenced Chapter 11 proceedings in the US for the express purpose of conducting an orderly wind down of the US operations. CCM was deliberately not included in the Chapter 11 proceedings to allow for the possibility of a going-concern sale.

On December 12, the Ontario Superior Court approved a quick flip sale to Buyer’s Market Inc., a company led by the Roberts Group, the companies’ previous owners which sold the companies in 2019 and have not had any involvement since.

Grant Thornton is the proposal trustee.

Counsel is TGF for the companies, Gowling WLG for the proposal trustee, Torkin Manes for the purchaser, Miller Thomson for BMO and Blakes for Walmart Canada.