Comark Announces Intention to Restructure Under Companies' Creditors Arrangement Act

MISSISSAUGA, Ontario, June 03, 2020 (GLOBE NEWSWIRE) -- Comark Holdings Inc. and its subsidiaries ("Comark" or the "Company"), a leading specialty fashion retailer serving customers through its Ricki's, cleo and Bootlegger banners, announced today that they have obtained protection from their creditors pursuant to an Initial Order from the Ontario Superior Court of Justice (the "Court") under the Companies' Creditors Arrangement Act ("CCAA").

Comark commenced proceedings under the CCAA to restructure its operations and address the impacts of a challenging retail environment and the COVID-19 pandemic. The restructuring proceedings will provide Comark the opportunity to optimize its store footprint and leasing costs with the aim of emerging as a stronger business, better able to serve and support its loyal customers.

"Due to the recent events transpiring from COVID-19, retailers globally are facing difficult and uncertain times.  Top of mind for our loyal customers and employees is that the majority of our Ricki's, cleo and Bootlegger stores across Canada continue to be open for business, with physical stores scheduled to re-open in conformity with local guidelines," said Gerry Bachynski, President of Comark. "Each of our banners will continue to stock our exclusive apparel and all of our rewards and gift card programs will continue to be honoured at this time. As has been the case since the start of store closures brought on by COVID-19, each banner's webstore continues to remain open."

Mr. Bachynski added, "Comark enters CCAA protection with the support of its lender and shareholders. Together, we are firmly committed to emerging from creditor protection more competitive and properly positioned for the future."

As part of the CCAA proceedings, the Company intends to seek the Court's authorization to conduct a process to solicit proposals for sale or investment transactions involving the Company. The Company expects its principal shareholder to participate in this process and to submit a transaction proposal that will allow Comark to emerge from CCAA protection as expeditiously as possible as a stronger company. Court filings as well as other information related to the Company's CCAA proceedings will be available on the Monitor's website at www.alvarezandmarsal.com/comarkholdings. 

About Comark Holdings Inc.

Comark is one of Canada's leading specialty apparel retailers. Established in 1976, the Company has over 300 stores operating under three banners: Ricki's, cleo and Bootlegger. Comark stores are located in shopping malls, big box power centres and strategic suburban plazas across Canada. The Company's long history throughout the country has fostered tremendous customer loyalty within each division's target market.

Requests for further information and enquiries may be directed to: Gerry Bachynski, (905) 567-7375 Ext. 2110, [email protected]