Grafton Connor Group, CCAA

Grafton Connor Group, a group of companies which own and operate a collection of restaurants, bars, nightclubs, entertainment and special event venues in Halifax, Nova Scotia, obtained CCAA protection on August 20.

The Grafton Connor Group was founded in 1972 and is owned by Gary Hurst. Its portfolio includes some of the most iconic and long-standing venues in Halifax, notably the Dome, the 5 Fishermen, and the Grafton Street Dinner Theatre. The Grafton Connor Group employs approximately 400 individuals and serves approximately 12,000 customers weekly.

The Group’s issues were largely driven by the pandemic. From March 2020 through April 2022, government-mandated closures and capacity restrictions caused significant disruption across all venues. Rapidly rising interest rates in late 2022 further intensified cash flow and debt servicing pressure, compounding the financial burden accumulated during the pandemic.

In June 2023, the Sunnyside Restaurant was permanently closed following a flood of the Little Sackville River, resulting in the abandonment of the site and the loss of a key income-generating asset. In September 2023, primary lender CMLS Financial refused to renew an $8 million mortgage. A bridge loan with Ducimus Capital was ultimately secured, although at a higher interest rate.

Deferred HST remittances during the pandemic amounted to arrears of over $5 million, resulting in CRA sweeping certain bank accounts. Although the Group has returned to pre-COVID revenue levels and entered its peak operating season, the compounded financial pressures listed above have created a debt burden that cannot be supported by available cash flows.

MNP is the monitor, while Resolve Advisory Services is the financial advisor.

Counsel is O’Keefe & Sullivan for the Grafton Connor Group, BLG for the monitor, McInnes Cooper for Ducimus Capital, and Cox & Palmer for Park Lawn Cemetery Care and Maintenance Trust.