-All cleo, Bootlegger and Ricki's stores across Canada remain open for business -
MISSISSAUGA, ON, March 26, 2015 /CNW/ - Comark Inc. ("Comark" or the "Company"), a leading Canadian specialty fashion retailer serving customers through its Ricki's, Bootlegger and cleo banners, announced today that the Company has successfully obtained an initial Order from the Ontario Superior Court of Justice (Commercial Division) granting it creditor protection under the Companies' Creditors Arrangement Act ("CCAA") (the "Initial Order"). Comark commenced proceedings under the CCAA to provide it with the necessary time and stability to restructure its operations and emerge as a stronger business, better able to serve and support its loyal customer base.
"For our customers and employees, what is most important is that our Ricki's, Bootlegger and cleo stores across Canada remain open for business," said Gerry Bachynski, President and CEO of Comark. "As we work through the restructuring process, we will continue to stock the latest mix of exclusive private-label and nationally branded apparel, and all of our popular rewards programs, gift cards, warranties and exchanges will be honoured. We remain committed to providing the same superior service customers have come to expect from us."
Mr. Bachynski added, "Comark enters CCAA protection with the full support of its lenders and shareholders. Together, we are firmly committed to emerging from creditor protection financially stronger, more competitive and well-positioned for the future."
As a first step towards the restructuring of the business, Comark will close some underperforming stores across its three banners over the next 30 days. The Company is also reviewing corporate staff levels at its Mississauga headquarters, as well as at regional offices and distribution centre in Richmond, Winnipeg and Laval, Quebec. Comark's senior management, and divisional management of Ricki's, Bootlegger and cleo, remain responsible for the day-to-day operations of the businesses.
Alvarez & Marsal Canada Inc. has been appointed as the Monitor of the Company in the CCAA proceeding to assist the Company in its restructuring and supervise the sale process. Under the Initial Order, among other things, Comark was granted a stay of proceedings, staying creditor claims against the Company during the CCAA process.
Comark has engaged Osler, Hoskin & Harcourt LLP as its legal advisor and Houlihan Lokey as its financial advisor to assist the Company in identifying potential purchasers of, or investors in, Comark's business.
Additional information regarding the terms of the Initial Order will be announced later in the day. Additional information regarding the Company's CCAA proceedings, including court materials, will be made publicly available on the Monitor's website at www.alvarezandmarsal.com/comark. Comark will provide further updates throughout its restructuring process.
About Comark Inc.
Comark is one of Canada's leading specialty apparel retailers. Established in 1976, the Company today has over 300 stores operating under three divisions: Ricki's, Bootlegger and cleo. Comark stores are located in shopping malls, big box power centres and strategic suburban plazas across Canada. The Company's long history throughout the country has fostered tremendous customer loyalty within each division's target market. Each of its divisions targets a segment of Comark's clearly defined customer base, ranging from young adults to the New50 Woman, with a mix of exclusive private-label and nationally branded product.
SOURCE Comark Inc.
For further information: Comark Inc., (905) 567-7375, [email protected]; Media contact: Nick Anstett, Longview Communications, (416) 649-8008