(MENAFN- GlobeNewsWire - Nasdaq) MISSISSAUGA, Ontario, Jan. 30, 2025 (GLOBE NEWSWIRE) -- Comark Holdings Inc. (“ Comark ”), on behalf of Bootlegger Clothing Inc. (“ Bootlegger ”), cleo fashions Inc. (“ cleo ”), and Ricki's Fashions Inc. (“ Ricki's ”), specialty fashion retailers serving customers across Canada, announced today that it has entered into two separate transaction agreements that will seek to implement going concern transactions for each of its three banners.
cleo/Ricki's Transaction
Comark is pleased to announce that it has entered into an agreement for the sale of cleo and Ricki's to Putman Investments, owned by Canadian retail veteran Doug Putman, who also recently acquired the Northern Reflections retail business.
Under the terms of the cleo/Ricki's transaction, Putman Investments will purchase the assets of both cleo and Ricki's and seek to assume leases for certain existing store locations, with the plan to continue employment for a number of current employees of these businesses.
The cleo/Ricki's transaction is subject to certain closing conditions, including approval from the Ontario Superior Court of Justice (Commercial List) (the“ Court ”) in Comark's ongoing restructuring proceedings under the Companies' Creditors Arrangement Act, and Putman Investments successfully reaching go-forward lease arrangements with the relevant landlords.
If approved by the Court, the transaction is expected to close in February 2025.
Bootlegger Transaction
Comark is also pleased to announce that it has entered into a stalking horse transaction agreement for the sale of Bootlegger to Warehouse One Clothing Ltd. (the“ Stalking Horse Transaction ”) in connection with a proposed sale and investment solicitation process (“ Sale Process ”) intended to facilitate a restructuring of the Bootlegger business, and an exit from the CCAA proceedings as a going concern. With over 100 store locations, Warehouse One is a trusted and affordable retailer of jeans in every size, making it easy for customers to look and feel their best.
Pursuant to the Sale Process, parties interested in acquiring the Bootlegger business, and/or certain assets not included in the cleo/Ricki's transaction, are requested to contact the Monitor for additional information about participating in the Sale Process. Qualified bids in the Sale Process must be submitted by February 20, 2025.
The Stalking Horse Transaction agreement and the Sale Process are both subject to Court approval. If no qualified bids are received by the deadline, Comark will seek Court approval of the Stalking Horse Transaction for the sale of Bootlegger to Warehouse One, who intends to continue the Bootlegger business in at least 25 of the existing Bootlegger store locations, subject to successfully reaching go-forward lease arrangements with the relevant landlords.
Next Steps
As part of the CCAA proceedings, Comark intends to seek Court approval of the above transactions at a hearing scheduled for February 4, 2025. Court filings as well as other information related to the CCAA proceedings is available on the Monitor's website at .
For additional information regarding the Sale Process, interested parties can contact the Monitor directly at ... .
Following the closing of the transactions described above, each of which are pending Court approval, the store locations associated with the going concern transactions will be removed from the current liquidation process, which will continue in respect of the remaining store locations.
About Comark
Comark is a Canadian specialty apparel retailer. Established in 1976, Comark operates approximately 220 stores under three banners: Ricki's, cleo and Bootlegger. Comark stores are located in shopping malls, big box power centres and strategic suburban plazas across Canada. Comark's long history throughout the country has fostered tremendous customer loyalty within each division's target market.
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