Warehouse One and Bootlegger begin wind-down under CCAA protection

Warehouse One Clothing Ltd., the operator of the Warehouse One and Bootlegger apparel chains, obtained protection under the Companies’ Creditors Arrangement Act on May 6, 2026, commencing proceedings that are expected to result in the orderly liquidation and closure of all 128 retail locations across Canada.

The Winnipeg-headquartered retailer operates 95 Warehouse One stores, 25 Bootlegger locations and 8 combined-banner stores across eight provinces and one territory. The company maintains its registered office in Vancouver and operates a centralized distribution and warehouse network from Winnipeg. The business employed approximately 982 non-unionized employees as of April 28, 2026, including 232 employees in Manitoba tied to the head office and distribution operations.

The CCAA filing materials describe a prolonged deterioration in the company’s financial condition driven by declining mall traffic, intensifying competition from low-cost and online apparel retailers, and losses associated with the 2025 acquisition of the Bootlegger business. The company reported a net loss of approximately $15 million for the fiscal year ended February 28, 2026, compared with a loss of approximately $6.5 million in the prior fiscal year.

Warehouse One acquired the Bootlegger brand and related assets in April 2025 through the earlier CCAA proceedings involving Bootlegger Clothing Inc. and affiliated entities. Court materials state that the integration generated operational challenges and additional losses that further strained liquidity. The retailer also faced foreign exchange exposure because a substantial portion of inventory purchases were sourced from manufacturers in China and Bangladesh and denominated in US dollars while revenue was earned in Canadian currency.

The company’s liquidity shortfall intensified despite substantial insider financial support. Since 2020, affiliated lenders advanced approximately $31.5 million in secured financing, including approximately $20.5 million advanced after January 2025. As of April 28, 2026, the company owed approximately $7.1 million under its senior revolving credit facility and approximately $33.1 million under affiliate secured loans. The senior facility had originally been provided by CIBC, but Highgate Capital Ltd., an affiliate of the retailer through common ownership, acquired the bank’s position on April 28, 2026, providing full recovery for CIBC.

The company also has approximately $7 million in unsecured liabilities, including $3.5 million owing to domestic merchandise vendors, $2.2 million owing to foreign merchandise suppliers, and $1.3 million owing to service providers and other non-trade creditors. Warehouse One reportedly also carries approximately $900,000 in outstanding gift card obligations, net of estimated breakage. The Initial Order authorizes the retailer to honour gift cards only until May 13, 2026.

The company advised the court that it intends to pursue an orderly liquidation process rather than a going-concern restructuring. The monitor stated that the debtor plans to seek approval at the comeback hearing to commence liquidation sales and close its retail network while also evaluating opportunities to maximize value from ancillary assets, including intellectual property, corporate attributes and one owned real estate asset in Kenora, Ontario. Highgate Capital is providing a DIP loan.

A&M is the monitor. Counsel is Pitblado for Warehouse One, Goodmans for the monitor, and MLT Aikins for Highgate Capital et al.