Colabor Group seeks CCAA protection amid liquidity crunch and leveraged 2025 acquisition

On January 8, 2026, the Superior Court of Québec granted an Initial Order under the Companies’ Creditors Arrangement Act in favour of Groupe Colabor inc. and its affiliated applicants Transport Paul-Émile Dubé ltée, Les Pêcheries Norref Québec inc., and Le Groupe Resto-Achats inc. Raymond Chabot inc. was appointed as Monitor. The Court also approved the implementation of a court-supervised Sale and Investment Solicitation Process.

Colabor is a publicly-listed Québec-based food distribution group whose shares trade on the Toronto Stock Exchange under the symbol GCL. The business operates primarily in the distribution and commercialization of food and related products across Eastern Canada, serving hotel, restaurant, institutional, retail, and wholesale customers.

As of the filing date, the Colabor group employed approximately 725 employees across its operations, with additional staff employed by its subsidiaries Norref, Transport Paul-Émile Dubé, and Groupe Resto-Achats. The group operates a network of leased distribution centres in Saint-Bruno-de-Montarville, Lévis, and Rimouski, supported by in-house and third-party transportation assets.

Colabor’s liquidity crisis reportedly stems from a convergence of structural and transactional pressures rather than a sudden operational collapse. A central factor was Colabor’s June 2025 acquisition of the assets of Alimplus inc. and the shares of Tout-Prêt inc. for $48.5 million. That transaction was financed through a substantial expansion of the company’s senior credit facilities and the layering of subordinated debt, increasing total indebtedness to approximately $112.1 million by early September 2025, up from $47.8 million at the end of fiscal 2024.

Delays in closing the acquisition, driven in part by Competition Bureau approvals, prolonged transitional service arrangements and required Colabor to carry overlapping warehouse leases and duplicated cost structures for several months. Integration costs were compounded by the hiring of more than 100 employees in anticipation of consolidating operations.

Operating results deteriorated further following the renegotiation of a major institutional supply contract representing 12.4% of 2024 revenues, which renewed on materially lower margin terms. At the same time, a July 2025 cybersecurity incident disrupted operations and resulted in lost sales estimated at $8 million.

These pressures culminated in covenant defaults under Colabor’s senior credit facilities by September 2025, triggering a series of forbearance agreements that expired on January 30, 2026. An anticipated $15 million equity raise was not completed, leaving the group without a viable out-of-court refinancing path.

The Initial Order approved interim financing of up to $9 million from the existing banking syndicate, led by The Toronto-Dominion Bank as administrative agent. The Court also approved a Sale and Investment Solicitation Process designed to solicit bids for all or part of the Colabor group’s business or assets, as well as potential equity investments. The SISP is intended to run in parallel with operational restructuring efforts, including cost rationalization and completion of the Alimplus integration.

Colabor and the affiliated applicants are represented by Stikeman Elliott LLP. Raymond Chabot inc. acts as Monitor, with Fasken Martineau DuMoulin LLP as counsel to the Monitor.

The senior secured banking syndicate is represented by Borden Ladner Gervais LLP, with Deloitte Restructuring Inc. acting as financial advisor. The syndicate includes The Toronto-Dominion Bank, Bank of Montreal, and The Bank of Nova Scotia.

Investissement Québec, represented by Norton Rose Fulbright Canada S.E.N.C.R.L., is a significant unsecured creditor in respect of acquisition financing advanced in connection with the Alimplus transaction.