Giftcraft Holdings, Inc., Ripskirt Hawaii, LLC et al., Receivership

Giftcraft Holdings, Inc., Ripskirt Hawaii, LLC et al., a group of related Ontario and US companies, were placed into receivership on May 14 on application by RBC, owed approximately CDN$15 million and US$27 million.

Giftcraft carries on business as a Brampton-based supplier of gift items, including home décor, jewellery, and other novelties. Its primary business line is distribution through retailers across North America, ranging from independent specialty retailers to national chains.

Ripskirt, a US company, carries on business producing and distributing women’s apparel, specializing in quick-drying skirts, dresses and cover-ups. Ripskirt’s products are aimed at the vacation and leisure market and are sold through various channels, including ecommerce and retail distribution.

The companies have defaulted on their loan from RBC by, among other things, breaching certain covenants. RBC demanded payment but the loan has not been repaid, and RBC has lost confidence in the companies and their abilities to repay the indebtedness. Chapter 15 recognition is being sought in the US.

KPMG is the receiver.

Counsel is BLG for RBC and Blakes for the companies.