Blog

Mendocino to Close Stores Under the Insolvency Act

On July 14, Mendocino Clothing Co. filed a notice of intention under the Canadian bankruptcy law to begin plans to close stores. The retailer will instead focus on online orders and eCommerce. 

According to documents posted on the KSV Kofman Inc. website TD Bank as a secured creditor is owed $2.69 million. Mendocino owes an additional $5.78 million to American Express and OPGI MGMT.

One of the company’s trustees explained in the documents that, “As a result of challenges resulting from the pandemic, the company recently made the very difficult decision to discontinue all or substantially all of its store operations and focus on an e-commerce model. The protection resulting from filing the NOI will provide the stability required in order to advance and execute the company’s restructuring plan.”

Read more HERE

a
close slider