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Directions East Retail Ltd.
Directions East Retail Ltd., a Toronto, Ontario-based jewellery retailer with a 50-year history, filed an NOI on October 30. Since 2017, the company's sales have declined significantly due to reduced mall traffic and a surge in competing internet sales. Although the company began consolidating its operations in 2019, it was forced to totally shut down operations with the onset of the COVID-19 pandemic in the spring of 2020. When operations re-opened in July, the company had further terminated five of its retail locations. Shortly after, RBC — which had been the company's banker since 1972 — sent the company a demand letter and Notice of Intention to Enforce Security. Given that holiday season sales are critical to the company's financial outlook, the company will wait to file a proposal until after it reviews the financial results of the 2020 holiday season. Rosen Goldberg is the proposal trustee. Counsel is Minden Gross for RBC and Fogler, Rubinoff for the proposal trustee.