Hakim Optical Laboratory Limited et al., CCAA

Hakim Optical Laboratory Limited et al., the largest privately-owned optical chain in Canada, had its NOI proceedings continued under the CCAA on May 15.

Following a recent downsizing, the company now has approximately 70 active retail store locations, 265 employees and 49 independent optometrists who have their own employees.

The company has been facing liquidity issues since the COVID-19 pandemic and a 2022 cyberattack. A number of restructuring and cash conservation initiatives have been undertaken over the past several years, including completing a sale transaction involving all of the company's Atlantic Canada stores.

During the past 18 months, in order to conserve needed liquidity, the company closed approximately 40 unprofitable stores and laboratory locations prior to lease expiry and, in doing so, stopped making monthly rent payments associated with these locations. Landlords took steps to enforce, prompting the company to file an NOI.

The company also defaulted on its obligations to RBC (its then senior secured lender) and faced a receivership application that was avoided by the assignment of RBC’s debt to 1001112855 Ontario Inc., which provided some additional bridge financing earlier this year. It is now the proposed DIP lender and stalking horse bidder.

KSV is the monitor.

Counsel is Bennett Jones for the company, Chaitons for the monitor, Loopstra Nixon for 1001112855 Ontario Inc., Camelino Galessiere for Ivanhoe Cambridge et al., Cassino Coulston & Gallagher for Richmond Highland, Torys for Cadillac Fairview, and Gardiner Roberts for Paradise Lifetime Rogers.