Office of the Superintendent of Bankruptcy Canada. Iconic Montreal retailer Le Chateau filed for bankruptcy in October, after 60 years in business. Reply. Filing Bankruptcy. Another Canadian retailer Mendocino is closing its stores for good, as reported in July. Delaware was the second most popular jurisdiction with six filings in 2020. Chapter 11 bankruptcies had hit a nearly 10-year high in 2019 of 42, which was likely in large part to retailers going out of business. Three of the casino bankruptcies came during the recession of the early 1990s and the Gulf War, both of which contributed to hard times in Atlantic City, New Jersey's gambling facilities. Unfortunately, the Gap flagship plans to close in January 2021. Each year the Office of the Superintendent of Bankruptcy increases these limits to account for inflation. Face it. What type of emails would you like to receive? Throughout 2020 some of Canada’s most iconic companies have filed for creditor protection either using the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act. Bankruptcies in Canada increased to 188 Companies in September from 138 Companies in August of 2020. The breakneck pace of retail bankruptcies slowed in August, with at least three well-known companies filing for Chapter 11. While J.Crew has filed for Chapter 11 Bankruptcy, its online operations will remain open throughout the restructuring. Countless more are on their way. The closures are expected to affect all Canadian Bench locations, but the iconic U.K.-based brand will still be available in retailers like Hudson’s Bay, WINNERS, and more. If you earn over this limit, you are required to contribute half of that surplus income into your bankruptcy estate, and it is distributed to your creditors. The total number of insolvencies in August 2020 was 42.4% lower than the total number of insolvencies in August 2019. Lole: Montreal-based athleisure brand Lole, considered to be a competitor with Lululemon, which filed for bankruptcy protection in May and shut its corporate stores in Canada and globally (franchised locations are still open according to a former store manager). The number of Alberta business bankruptcies in November 2020 increased by 50.0% from the same period a year ago, from 10 to 15. London, Ontario (PRWEB) September 21, 2020 -- According to the Office of the Superintendent of Bankruptcy Canada, in April 2020 bankruptcies were down nearly LONDON, Ontario (PRWEB) September 21, 2020 According to the Office of the Superintendent of Bankruptcy Canada, in April 2020 bankruptcies were down nearly 36 percent from the previous year. 2020 has been unusual for bankruptcy filings, which can be directly attributed to the effects of the pandemic and the federal government’s stimulus response. In this report, we provide a detailed analysis of the data on insolvency filings available in Canada, situated in historical, geographic and sectorial contexts. Published on Nov 16, 2020 6:02am. On a positive note, the company launched an online shopping platform, which did not exist before COVID-19. One Companies’ Creditors Arrangement Act (CCAA) proceeding was filed with the OSB in August 2020. At the beginning of the year, a third-quarter fiscal report for Pier 1 Imports revealed that overall sales were down at the home retailer. Stay in the know and get updates on retail news, contests, fashion, style, and more straight to your inbox. He also entered a Manhattan hotel and two casino holding companies into bankruptcy. Morning Brief: Bankruptcies on the rise. Retailers had a brutal 2019, and while predictions for 2020 were similarly grim, they didn't include the coronavirus. • Texas accounted for 67% of the total producer filings in 2020, with 31 in total. 2020 has been a hectic year for retail bankruptcies. According to Retail-Insider, the main goal is to liquidate all inventory in anticipation of these permanent closures which are planned for July 18 for Thyme Maternity and August 15 for Addition Elle. Uncertainty, however, has been a hallmark of Covid-19 in 2020. Recent. Companies such Le Chateau Inc. During the pandemic, Gap announced that many of its stores would not reopen as temporary store closures lift. At the end of January 2020, Freemark Apparel Brands, the company that has the rights to sell Bench merchandise in Canada, announced that it would be closing all of its Bench stores to focus on e-commerce and wholesale clients. By Mario Toneguzzi. 2016 to 46% in 2020. Filing for protection under the CCAA is truly the hardest decision we have had to make as an organization in our almost 100 years of history, but this pandemic has left us no choice,” Chief Executive Officer Stephen Reitman said. Bankruptcies in Canada decreased to 165 Companies in November from 178 Companies in October of 2020. Today’s Morning Brief is brought to you by Chartered Professional Accountants of Canada. Statistics Canada reports that Canadians’ debt to disposable income ratio slid 152% between April and June versus the 175.4% reading in the first quarter of 2020… Notably, Ascena also owns Lane Bryant, LOFT, Lou & Grey, and Justice. In a press release, David Bensadoun, Chief Executive Officer of the company, said, “It is no secret that the retail industry has experienced rapid and significant change over the last several years. Despite the economic hardship that the pandemic has brought, bankruptcy proceedings actually slowed to a crawl for most of 2020 because the unprecedented slew of support programs gave many Canadians a boost to their incomes — and often a temporary respite from their debts, enough to keep their heads above water. The company also said that it anticipates that stores will reopen when it’s safe to do so, however, Canadian stores had already been dwindling prior to the government-mandated closures of non-essential businesses. Business insolvencies for the 12 month period ending August 31, 2020, decreased by 18.9% compared with the 12 month period ending August 31, 2019. Montreal-based ALDO, the parent company of GLOBO, Aldo Shoes, and Call It Spring, obtained creditor protection in May 2020. Be the first to find out about the warehouse sales, sample sales, and pop-up sales that StyleDemocracy hosts. Quebec-based sporting goods retailer SAIL Outdoors Inc., which operates SAIL and Sportium has just filed for bankruptcy protection. Global News reports that Lucky brand will close 13 of the 200 stores it operates, but that number could go up. It’s said that this is part of the brand’s strategy to adapt and grow its online presence. No matter the party in power, bankruptcies were dropping pretty steadily. With assets of roughly $16.2 billion and liabilities of $11.8 billion, the filing represents the fourth-largest bankruptcy by assets so far in 2020, above that of Intelsat. January saw many store closures in 2020. And more have closed since then, including restaurants in California, Texas and South Carolina last year. However, despite the promise of the early resumption, the airline suspended scheduled services once again on January 7th, 2020. Crew store on 5th Avenue remains closed on May 4, 2020 in New York City. Bryan Thomas | Getty Images The New York apparel company filed for bankruptcy on May 4 … A view of GNC storefront closed during the coronavirus pandemic on May 2, 2020, in Vancouver, Canada. New December bankruptcy filings continue a 14-year slide. Pandemic Bankruptcies So Far. Jewelry store Thomas Sabo is known for its cute charm bracelets. The retail biz is getting tougher and tougher with competition heating up and the current COVID-19 pandemic that forced stores to close. The 10 biggest retail bankruptcies of 2020 This year, Neiman Marcus and J.C. Penney joined the ranks of some of the biggest retail bankruptcies on record, including Sears, Toys R Us and Circuit City. Over the past few years, Canada has seen some many once-beloved stores shutter locations or shut down business for good. The previous year saw a number of well-known national and regional retailers file for both Chapter 7 and Chapter 11 bankruptcy. But, whatever the cause of the decline, bankruptcies still seem likely to rise if unemployment and loss of income persist. PDF Version. The pandemic recession plunged dozens of large American companies into bankruptcy this summer. 5.0 rating based on 12,345 ratings. Visit us for updates on the very best shopping events and news on all things fashion, beauty, retail, and lifestyle. Home; About; Listing; Services; Contact Us; Register; recent canadian bankruptcies 2020 Le Chateau Inc , Moores the Suit People Corp , David’s Tea Inc . © Copyright STYLEDEMOCRACY 2017- 2021. The pandemic recession plunged dozens of large American companies into bankruptcy this summer. The total number of insolvencies (bankruptcies and proposals) in Canada decreased by 2.4% in August 2020 compared to the previous month. Share. In June, Addition Elle and Thyme Maternity announced that stores will permanently close in Canada. This news means that 77 Addition Elle and 54 Thyme Maternity locations will close as part of Reitmans’ restructuring plan since it filed for creditor protection. The technology giant has decided to close all seven of its stores in Canada, as well as most of its physical stores across the world. Groupe Dynamite, the Montreal-based company that owns Dynamite and Garage, filed for Creditor Protection in September. 453 KB, 9 pages. Consumer Insolvencies Approach Record in Debt-Weary Canada By . This news follows the announcement that the Gap flagship in Chicago will also be closing in January 2021. Consumer bankruptcies in Alberta decreased by 44.8%, from 480 in November 2019 to 265 in November 2020. The crisis like no other in 2020 leaves little room for Canadians to avert bankruptcies. That’s why we throw the biggest shopping events across North America and bring you all the latest news in fashion, retail, and shopping. Consumer bankruptcies decreased by 25.0%, while consumer proposals decreased by 7.6%. August 5, 2020. Unusual as this might seem, this trend is evident throughout the developed world. After 74 years in business, fair trade retailer Ten Thousand Villages announced that it would be shuttering its Canadian operations, including its web store and the majority of its physical retail locations. At the end of November 2019, home improvement chain Lowe’s Canada announced that it would be shuttering stores across Canada in order to improve overall performance. The biggest victim in the first half of 2020 was Chesapeake Energy, a shale giant that declared bankruptcy on June 28 with more than $9 billion in debt. However, the number of cases in Canada is far fewer than in the United States. Amazon is the future. David Ian Gray , founder and strategist at DIG360 Consulting Ltd. , said in an interview last week that will be the inevitable consequence of the devastating economic impact the COVID-19 (coronavirus) pandemic is having on … The biggest victim in the first half of 2020 was Chesapeake Energy, a shale giant that declared bankruptcy on June 28 with more than $9 billion in debt. Airlines that operated as subsidiaries of major groups have been among the most affected by closures during this 2020 unprecedented crisis. bankruptcies in excess of $1 billion in 2020. Victoria’s Secret has been on the decline for years. At the end of January 2020, Freemark Apparel Brands, the company that has the rights to sell Bench merchandise in Canada, announced that it would be closing all of its Bench stores to focus on e-commerce and wholesale clients. December 19, 2020 . Lole’s filings indicated that the company has about $47 million in debt. The number of bankruptcies in Canada decreased to 178 companies companies in October 2020. The proportion of proposals in consumer insolvencies increased to 63.9% during the 12 month period ending August 31, 2020, up from 58.9% during the 12 month period ending August 31, 2019. Excel Version . The Gap has officially announced that its Canadian flagship in Toronto will be permanently closing in January 2021. 2016 to 46% in 2020. Companies such Le Chateau Inc. Chris Fournier. The federal department announced the approval on Wednesday after completing a review of the company’s clinical trial data. The popular coffee chain plans to close 200 stores across Canada over the span of the next two years. In Review: 2020’s Airline Failures & Bankruptcies. The closures are expected to affect all Canadian Bench locations, but the iconic U.K.-based brand will still be available in retailers like Hudson’s Bay, WINNERS, and more. In May 2020, Reitmans filed for creditor protection. Note: This article will be updated as more stores and brands announce filings and closures. A massive number of companies have waved the white flag as COVID-19 wreaks havoc on not just retail, but other parts of the global economy — and 2021 is unlikely to be much better. Bankruptcies went up fast, though there were periods where filings dropped for a few years. Delaware was the second most popular jurisdiction with six filings in 2020. While four locations across the world will stay open as they are reimagined, the tech company will be primarily operating online. The coronavirus pandemic has wreaked havoc on businesses of all types, but few establishments have suffered more than restaurants. At the time of the announcement, there were no confirmed number of store closings. However, Starbucks is also testing new pickup-only locations that you may see pop-up around your neighbourhood. This suspension was planned to last until February 9th. Articles You Might Be Interested InThe Running List Of Retail Store Closures And Bankruptcies In 2019 10 Canadian Store Closings That Happened In 2019 And Why They Matter BiWay Will Be Reopening In The Summer Of 2020 6 American Stores Worth Crossing The Border For 11 Stories That Shaped Canadian Retail In 2019. The total number of insolvencies (bankruptcies and proposals) in Canada decreased by 2.4% in August 2020 compared to the previous month. Le Chateau Inc , Moores the Suit People Corp , David’s Tea Inc . In April 2020, bankruptcies fell to 2,289, which was a huge drop from the 3,916 bankruptcies seen in March, which itself was already at the lowest level since at least 2011. Here is a look at some of the major retail closures announced in Canada in 2020, both before and during the pandemic. The Toronto-based and family-owned company also runs M Boutique, which will likely be closing as well. Insolvency Statistics in Canada January 2020. This year has been a challenging one for retailers. 2004 - 2020: Statistics Canada: Canada Bankruptcies History. As its parent company Regent plans to downsize the chain, La Senza will be closing 17 stores across the country. The World Needs a Christmas Miracle. The maximum level was 872 companies and minimum was 108 companies. • Texas accounted for 67% of the total producer filings in 2020, with 31 in total. By Dawn Geske 12/25/20 AT 1:00 PM. Our lawyers have played a key role assisting clients in high-profile E&P, midstream and oilfield services matters, including asset sales, refinancings, debt restructurings and Chapter 11 cases, representing debtors, creditors, energy lenders and private equity Bankruptcies decreased by 2.1% and proposals decreased by 2.5%. The filing came with news that the company allegedly had debts of over $12 billion. Hudson’s Bay has found itself in trouble as the retailer continues to close stores around the country. If you file for bankruptcy in Canada, you are allowed to keep a portion of your income each month. And the retail apocalypse has already claimed many victims in 2020. The brand has not announced how many of the stores are going to be closed yet. Throughout 2020 some of Canada’s most iconic companies have filed for creditor protection either using the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act. There will 10 stores across Canada in total, and Canadians can expect retail operations to cease at the end of May 2020. The electronics brand attributed the closures to a “dramatic shift to online shopping in specific markets.”. J.Crew filed for Chapter 11 Bankruptcy in May 2020, marking one of the first major retailers to do so since the coronavirus outbreak. 2019 and 2020 closings: 3 This seafood restaurant chain, which first opened in Houston in 1991, shrank by over a third when 41 locations abruptly went out of business in 2017. The previous year saw a number of well-known national and regional retailers file for both Chapter 7 and Chapter 11 bankruptcy. FTI has been something of an outlier in Canada, which has seen few trucking closures in 2019 unlike the in U.S. TFI International closed its Highland Transport division in May.. A federal registry of bankruptcies of C$5 million and above lists no other trucking entries for 2019. 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