Comark Residual Entity Files for Bankruptcy After CCAA Exit

2688182 Alberta Inc., the entity created to absorb excluded assets and liabilities from Comark Holdings’ restructuring, filed for bankruptcy on Sept. 15, 2025, with Albert Gelman Inc. appointed as trustee. The assignment represents one of the final steps in winding down the affairs of the Comark group following the termination of its Companies’ Creditors Arrangement Act proceedings earlier this year.

Comark and its subsidiaries—Ricki’s, cleo, and Bootlegger—obtained creditor protection on Jan. 7, 2025, with Alvarez & Marsal Canada Inc. appointed as monitor. At filing, the group operated more than 220 stores nationwide but faced liquidity strain from declining sales and high leverage.

The court approved two going-concern deals in quick succession. In February, Putman Investments acquired Ricki’s and cleo for about C$14.5 million, preserving 68 stores and nearly 500 jobs. Putman, which has built a portfolio of Canadian retail names including Toys “R” Us, Sunrise Records, and HMV, added the women’s fashion banners to its stable through the transaction. The following month, Bootlegger was sold to an affiliate of Warehouse One – The Jean Store, a Winnipeg-based denim and casual apparel chain with more than 100 Canadian locations. That reverse vesting transaction closed on Apr. 22, 2025, preserving 45 leases and 360 jobs while transferring excluded liabilities into 2688182 Alberta Inc.

A parallel liquidation process was managed by Tiger Asset Solutions Canada, which oversaw store-closing sales across non-core locations, monetized inventory and fixtures, and coordinated with the monitor and lenders on collections and payments. With the sale transactions complete, the court expanded the Monitor’s powers in May to disclaim contracts, process Wage Earner Protection Program claims for terminated employees, and prepare ResidualCo for bankruptcy. A wind-down reserve funded by Parian Logistics covered professional costs, and the CCAA proceedings were formally terminated with the Monitor discharged.

The bankruptcy of 2688182 Alberta Inc. had been contemplated from the outset of the reverse vesting order, ensuring Warehouse One’s acquisition closed free of legacy liabilities while leaving a clean structure in place for the continuing business.

Professionals: Osler, Hoskin & Harcourt LLP advised Comark and its affiliates. Alvarez & Marsal Canada Inc. acted as monitor, with Goodmans LLP as its counsel. Albert Gelman Inc. is trustee in bankruptcy. CIBC was represented by Blake, Cassels & Graydon LLP. Putman Investments was advised by Aird & Berlis LLP. Tiger Asset Solutions Canada was represented by Stikeman Elliott LLP. Other landlords, trade creditors, and stakeholders were represented by Torys, Camelino Galessiere, Gardiner Roberts, Fogler Rubinoff, Thornton Grout Finnigan, Dentons, Blaney McMurtry, Witten, FIJ Law, Gowling WLG, and others.