TORONTO, March 3, 2016 /CNW/ - Three Canadian Goodwill organizations and Clothesline have won a competitive process to purchase some of the assets of the former Goodwill Toronto Eastern Central and Northern Ontario (TECNO).
"It became clear that the best way to be supportive was to take part in the bidding process, which helps ensure that fair market value is realized for the assets. This will benefit the creditors, especially the former employees," says Paul Chapin, CEO of Goodwill, the Amity Group, headquartered in Hamilton.
Clothesline, which raises money for the Canadian Diabetes Association (CDA) along with Goodwill, The Amity Group; Goodwill Industries Essex Kent Lambton; and Goodwill Industries Niagara, took part in a competitive process arranged by the Trustee for the former Goodwill TECNO, which recently declared bankruptcy.
The competitive process had the oversight of five inspectors elected from among the creditors to represent their interests in reviewing the bids. Two of the inspectors were former employees of the now defunct operation (one each for unionized and non-unionized staff).
The Goodwill organizations and Clothesline will now leverage the assets they purchased to support their own charity and social enterprise work.
"All Clothesline generated net revenue will go to the Canadian Diabetes Association to help the 11 million Canadians with diabetes or pre-diabetes," says CDA President and CEO Rick Blickstead. "We are saddened by the loss of Goodwill in Toronto and some surrounding communities. We want to do the right thing in response to this situation. Our bid benefits the employee and creditor group, also ensuring the generous donations continue to be used for charitable purposes."
The Goodwill organizations will use the goods to help create jobs and support their various employment and training programs. Chapin said: "All the Goodwill organizations throughout Canada are autonomous. The other six Canadian Goodwills are operating in good standing in the communities they serve and continue to deliver on a successful century old social enterprise model of taking generous donations to support people seeking employment."
SOURCE Canadian Diabetes Association
For further information: Paul Kilbertus, Senior Manager, Strategic Communications, Canadian Diabetes Association, Office: 416-408-7083, Cell: 416-886-5187, [email protected]