Louis Garneau Sports Inc. et al., a Québec-based designer, manufacturer and retailer of clothing, cycling equipment and bikes operating under the Louis Garneau and Sugoi brands, filed an NOI on September 13.

Louis Garneau Sports was founded in 1983 by French Canadian cyclist Louis Garneau and his wife Monique Arsenault.

For several months, the companies have been facing a significant liquidity crisis due to difficult market conditions in the bicycle industry. This has caused significant delays in the payment of certain suppliers and subcontractors, in addition to causing supply chain disruptions.

To address short-term liquidity needs, the companies liquidated a large quantity of bicycles and reduced headcount. However, as of the end of June, the companies recorded a loss of $8.4 million for the last 9 months.

The companies sought a buyer and a pre-pack deal was reached with Lolë Brands Canada ULC. The sale was approved by the Court on the same day as the filing.

FTI is the proposal trustee.

Counsel is Fasken for the companies, Lavery for the proposal trustee, McCarthy Tétrault for National Bank, and Osler for Lolë Brands.