This is the third instalment in a series examining large retail insolvencies in Canada from the perspective of various stakeholders. This article discusses insolvencies from the perspective of corporate parents of distressed Canadian retailers.

The first article in the series, focusing on the landlord perspective, was published shortly after Sears Canada Inc.’s (Sears Canada) June 2017 filing under the Companies’ Creditors Arrangement Act (Canada) (CCAA) (Canada’s principal restructuring statute for large debtor companies and the functional equivalent to Chapter 11 of the U.S. Bankruptcy Code).

The second article, discussing the perspective of suppliers to insolvent retailers, was published in the wake of Toys “R” Us Canada Ltd.’s (Toys “R” Us Canada) cross-border insolvency filing in September 2017. This article follows in the shadow of Sears Canada’s inventory liquidation and cessation of operations in January 2018. The Sears Canada shut-down followed a failed attempt to secure a going concern sale.