The parent company of Vancouver-based grocer SPUD has just filed for creditor protection.
In a press release the following Monday, Freshlocal Solutions Inc. that the BC Supreme Court granted it “court protection from its creditors to enable it to continue a restructuring of its business and property as a going concern.”
“By the First Order, Ernst & Young Inc. appointed as monitor in the Business Credit Scheme Act (CCAA) and will assist the Company in creating a restructuring plan, which is expected to include the immediate initiation of a sale and investment solicitation process that seeks to monetize the Company’s core and non-core assets. to make.
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Ernst and Young also plans to complete interim financing arrangements to obtain near-term liquidity and continue initiatives that will help streamline and focus the operations of the company and its subsidiaries.
It has been an eventful few months for Freshlocal. Earlier this month, the company announced the resignation of a member of its board of directors. In April, the company said it had entered into a “loan and security agreement” with a group of strategic lenders, which will provide Freshlocal with $7 million in advances to “support the company’s ongoing financial and operational transformation and ultimately replace Silicon Valley Bank as the senior lender.
Meanwhile, trading of the company’s common stock on the Toronto Stock Exchange has been halted. The common stock is expected to be delisted as the company has filed for protection under the CCAA.
The company has a number of brands, including:
At this time, it is unknown how SPUD – which operates in cities around BC and Alberta – or any of the other brands could be affected by these moves.
On its website, SPUD says, “We select the best in local, organic and sustainable groceries by working directly with farmers and other producers.”