CPI Corp., CPI Portrait Studios of Canada Corp. and CPI Canadian Images continue to operate in the context of receivership proceedings under the Bankruptcy and Insolvency Act
TORONTO, April 16, 2013 /CNW/ - CPI Corp., CPI Portrait Studios of Canada Corp. and CPI Canadian Images (collectively, the "Companies"), operator of 358 portrait studios across Canada, announced today that an order was issued on April 15, 2013 by the Ontario Superior Court of Justice, placing it in receivership. Duff & Phelps Canada Restructuring Inc. was appointed as the Receiver.
The Companies' parent, US based CPI Corp. discontinued operations on April 4, 2013, due to significant financial challenges and ongoing operating losses. The Companies have a long history of profitability which makes it an attractive acquisition target. The principal purpose of the receivership proceedings is to create a stabilized environment in order to carry out a process to solicit purchasers for the Companies' business and assets in order to preserve the going-concern value of the Companies.
On April 30, 2013, the Receiver intends to bring a motion to deal with matters relating to the pension plan of CPI Corp. and other ancillary relief.
During the receivership proceedings, the Companies' operations will continue in the normal course. The Receiver is optimistic that the stability required by the receivership proceedings will provide the opportunity to advance and efficiently execute a sale process with the objective of completing a going-concern transaction in the best interests of the Companies' employees, customers and other stakeholders.
General information about the receivership proceedings of the Companies can be found at the Receiver`s website at http://www.duffandphelps.com/services/restructuring/Pages/RestructuringCases.aspx
This news release includes certain forward-looking information that is based upon current expectations, which involve, among other things, risks and uncertainties associated with the Companies' business and the receivership process. Forward-looking information in this news release includes, among others, statements with respect to the timing and continuance of the receivership proceedings, the sale process and potential opportunities for the Companies' ongoing operations. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking information, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", "will", "may", "should", "could", and similar expressions to the extent they relate to the Companies. The forward looking information is not historical fact, but reflects the Receiver's current expectations regarding future results or events. Forward-looking information is subject to a number of risks, uncertainties and assumptions that may cause the Companies' actual results to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Companies. Factors that could cause actual results or events to differ materially from current expectations include, among other things, the Companies' revenue streams being consistent with historical patterns, adjusted to reflect the Companies' recent changes to operate on a standalone basis; customers continue to use and pay for the Companies' services in accordance with historical results, credit and market risks, the uncertainty involved in court proceedings; uncertainties relating to the availability and costs of financing needed in the future; the ongoing operation of the Companies' business and other factors.
SOURCE: CPI Corp.For further information:
Duff & Phelps Canada Restructuring Inc.