Danier Leather starts Insolvency Process, Bankruptcy “Possible”
Wow, Canadian retailers just can’t seem to catch a break. The CBC is reporting that Canadian retailer Danier Leather has started insolvency proceedings that could see the company sold in part or end up bankrupt.
According to the CBC, Danier has 90 stores and is looking for an active buyer by the end of March.
While the company hasn’t yet declared bankruptcy, the reason for starting an insolvency process is to prevent creditors from taking immediate actions to recoup finances.
The insolvency process gives companies time to restructure their organization and through a restructuring, trim unnecessary operation and pay back creditors. If Danier is unable to do this in a reasonable time bankruptcy is possible.
The CBC article does point out that it’s important to note that Danier is not Bankrupt.
“It is important to note that the company is not bankrupt,” said Danier. “The company has sufficient resources to fund its operations during the [insolvency process] and its stores will remain open for business during that time, subject to any restructuring steps that the company may take during the process,” which the company hopes to have completed in about a month. – Via CBC News Article
We will keep you updated as this story progresses. Hopefully, Danier is able to restructure and stay a great Canadian retailer.
Photo Source: @eyesondisplay