Toronto-based retailer Mendocino Clothing Co. has filed for insolvency and plans to close its stores to focus on online orders, adding to the growing list of Canadian businesses that are shutting their doors this year.
TORONTO -- Retailer Mendocino Clothing Co. has filed for insolvency and plans to close its stores to focus on online orders, adding to theThe Toronto-based women's wear brand filed a notice of intention on July 14 to make a proposal under Canadian bankruptcy law, according to documents posted on the website of the trustee KSV Kofman Inc.
While the company previously announced that it would be gradually reopening some of its 28 Mendocino and M Boutique stores across the Greater Toronto Area after closing in March due to the COVID-19 pandemic, it’s now started restructuring proceedings to shift most of its business online.
"The protection resulting from filing the NOI will provide the stability required in order to advance and execute the company’s restructuring plan." The notice of intention is the formal first step in filing under Canada’s Bankruptcy and Insolvency Act. The filing gives Mendocino a temporary stay against any proceedings by its creditors.
The documents listed Toronto-Dominion Bank as a secured creditor owed $2.69 million, in addition to $5.78 million owed to unsecured creditors such as American Express and OPGI Mgmt.Mendocino, which has been operating since 1987, joins retailers DavidsTea, Aldo, Victoria's Secret, Bath & Body Works and more filing for creditor protection as businesses struggles to emerge from the economic impact of COVID-19.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
As Other Stores Fold, Walmart Canada Invests $3.5 Billion On UpgradesThe retailer plans to renovate 150 locations and make it easier to pay.
Read more »
Walmart Canada investing $3.5 billion over five years, notably on technologyWalmart Canada plans to invest $3.5 billion over the next five years to improve service in stores and on the web, renovate 150 stores and build two new distribution centres.
Read more »
Walmart to invest $3.5 billion in Canadian stores and online commerceThe investment over the next five years includes renovating 150 of Walmart’s 400 stores in Canada and opening two new distribution centres in the Greater Toronto Area and Surrey, B.C.
Read more »
Attorneys for officer in Rayshard Brooks’ killing seeks to remove prosecutorCourt filing says Fulton County District Attorney Paul Howard has repeatedly made comments to inflame public sentiment against Officer Garrett Rolfe
Read more »
Whole Foods sued by workers for barring BLM face coveringsWhole Foods Market discriminated against its employees when it barred them from wearing Black Lives Matter face coverings while on the job, according to a federal lawsuit filed Monday in Boston.
Read more »