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
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
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.