As with its neighbor to the south, Canada faced an influx of retail insolvencies during the midst of the COVID-19 pandemic. For example, in 2020, Canadian-based clothing retailers such as the Aldo Group and Groupe Dynamite filed applications under the Canadian Companies’ Creditors Arrangement Act (CCAA), Canada’s equivalent to a chapter 11 case, and commenced chapter 15 proceedings in the U.S. In 2021, the real estate segment of Sarku Japan, a Japanese quick-service restaurant chain, commenced a CCAA case and a chapter 15 proceeding, even though none of the debtors’ 226 restaurants are located in Canada.

Originally published in the ABI Journal, Vol. XLI, No. 2, February 2022.