Donnelly Holdings Ltd. et al., which operate a series of restaurants, bars, nightclubs, and barbershops in Greater Vancouver and Toronto, obtained CCAA protection on May 23 after never having fully recovered from the COVID-19 pandemic. They were formerly known collectively as "The Donnelly Group" and are presently branded as "Freehouse Collective". Since reopening to the public, the companies have faced several challenges, including: (a) their locations in the downtown business districts, which are not as busy due to work-from-home policies; (b) increased employment and labour costs; (c) supply chain issues, higher food and supply costs, higher lease rates and increased property tax costs; and (d) increases in insurance rates and increased interest rates. At present, the companies collectively owe BMO approximately $14.85 million. Farris is counsel for the companies. EY was appointed Monitor and is represented by Fasken. Lawson Lundell is counsel for BMO.

By: Dina Milivojevic