SRx Group of Companies, CCAA

SRx Group of Companies, an Ontario-headquartered group of companies which operate a chain of specialty pharmacy stores and clinics located across Canada, obtained CCAA protection on August 12.

The SRx Group currently operates 17 specialty pharmacies and 19 clinics where specialty health services are provided to patients, including the administration of specialty medication to patients with complex and often chronic, life-threatening health conditions such as HIV/AIDS, cancer, liver diseases, respirology diseases, hepatitis C, and rare genetic disorders. Prior to recent terminations, the SRx Group employed over 200 employees across the country.

The SRx Group has undergone an expansion into the retail pharmacy space in recent years, leading to exponential growth that was ultimately unsustainable with the SRx Group’s financial position. This growth led to significant debt obligations being incurred by the SRx Group and a stressed cash flow from operations. Absent DIP funding, the SRx Group could no longer meet its payroll obligations and was facing enforcement steps from its critical drug suppliers and landlords.

The purpose of the CCAA proceedings is to stabilize the SRx Group’s business to allow for the orderly wind down of its operations, including conducting a SISP, and to allow for the continued care of vulnerable patients while a transition plan is finalized. Caravel Capital Investments is providing a DIP loan.

Grant Thornton is the monitor.

Counsel is Miller Thomson for the companies, Cozen O’Connor for the monitor, McCarthy Tétrault for NBC, Manis Law for Adesh Vora, and Norton Rose Fulbright for Gilead Sciences Canada.