MONTREAL, Aug. 5, 2020 /CNW Telbec/ - Reitmans (Canada) Limited (the "Company") provides update today following its filing for creditor protection pursuant to the Companies' Creditors Arrangement Act (the "CCAA") on May 19, 2020, as extended until October 16, 2020. The Company entered into an interim (DIP) financing facility (the "DIP Facility") with Bank of Montreal. The DIP Facility consists of a revolving credit facility of up to $60 million. The DIP Facility will be used to fund the Company's operations as it reorganizes under the CCAA process and for other specific purposes, and is subject to the approval of the Québec Superior Court.
About Reitmans (Canada) Limited
The Company is a leading ladies apparel retailer with retail outlets throughout Canada. The Company employs approximately 6,000 people and currently operates 514 stores consisting of 255 Reitmans, 105 Penningtons, 80 RW & CO. and 74 Addition Elle. For more information, visit www.reitmanscanadalimited.com.
All of the statements contained herein, other than statements of fact that are independently verifiable at the date hereof, are forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond the Company's control. Such risks include but are not limited to: the impact of the current COVID-19 pandemic on the Company's business and affairs, including the ability to operate the physical stores in conformity with provincial and regional governmental guidelines and timing therefor, the risks and uncertainties related to the CCAA process, including the ability for the Company to obtain financing during and following the CCAA process and the related court orders, if applicable, the inability of the Company to transition its listing from the TSX to the TSX-V, general economic conditions, general conditions in the retail industry, seasonality, weather and other risks included in public filings of the Company, including those described in the Operating Risk Management and Financial Risk Management sections of the Company's most recent Management Discussion and Analysis for the fiscal year ended February 1, 2020. Consequently, actual future results may differ materially from the anticipated results expressed in forward-looking statements, which reflect the Company's expectations only as of the date of this press release. Forward-looking statements are based upon the Company's current estimates, beliefs and assumptions, which are based on management's assessment of government publications regarding the COVID-19 pandemic, its assessment of current and future consumer behavior, including the impact of the COVID-19 on such behavior, its assumption that, in the case of the CCAA process, it will obtain all necessary court orders extending the applicable stays of actions and proceedings against the Company to permit it to propose a restructuring plan to the affected creditors, its assessment of its ability to meet the listing conditions of the TSX-V, its perception of historical trends, current conditions and currently expected future developments, as well as other factors it believes are appropriate in the circumstances. Specific forward-looking statements in this press release may include, but are not limited to, statements with respect to the capacity to obtain financing. The reader should not place undue reliance on any forward-looking statements included herein. These statements speak only as of the date made and the Company is under no obligation and disavows any intention to update or revise such statements as a result of any event, circumstances or otherwise, except to the extent required under applicable securities law.
SOURCE Reitmans (Canada) Limited
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