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CTV News
18-06-2025
- Business
- CTV News
Canada's retailers are in trouble and there's more to come: insolvency, restructuring experts
A shopper walks past an empty sales area at the flagship downtown Hudson's Bay store in Vancouver, on Monday, March 24, 2025. THE CANADIAN PRESS/Darryl Dyck The fall of Hudson's Bay and Saks Fifth Avenue Canada may give the impression that one of the hottest trends this year is the distressed look, but retail and insolvency experts say the company's demise is part of a now-annual pitter-patter they expect to continue. Since the COVID-19 pandemic, they've seen hundreds of retail businesses reach the brink every year. As a result, some restructured, others reduced their store count — and many closed for good. What they've observed mirrors federal government data showing insolvencies and bankruptcies in the retail sector have been rising over the past four years after a roughly 25-year decline. The latest data comes from April, when Canada recorded 56 insolvencies and 46 bankruptcies. A month earlier, the Bay filed for creditor protection, making it one of four retail companies that sought a reprieve in the first quarter of the year. 'The Hudson's Bay Company ... was kind of like a big flag for everyone and I think is setting the expectation that retailers are in trouble and there's more to come,' said Michael Basso, a partner in business restructuring and turnaround services for accounting firm BDO Canada. Experts, including Basso, say the trend is a reflection of many businesses that haven't been able to catch a break between the slow rebound from the health crisis, see-sawing consumer demand and a global tariff war. 'A lot of them have been just barely staying afloat since the pandemic ... so when the tariffs happened, they probably just couldn't withstand one more thing at that point,' said Dina Kovacevic, editor of Insolvency Insider, a Canadian newsletter detailing bankruptcy and creditor protection news. This year's onslaught has not just toppled Canada's oldest company, Hudson's Bay, but also left shopping districts without Montreal apparel business Frank and Oak and farm goods store Peavey Mart. Ricki's, Cleo and Bootlegger-owner Comark Holdings Inc., Vancouver clothing brand Oak + Fort and eyewear chain Hakim Optical got in on the action as well, filing for creditor protection and beginning restructurings. Several framed their troubles around the COVID crisis or pointed the finger at U.S. President Donald Trump's penchant for tariffs, but Kovacevic said 'the retail industry has been struggling for some time.' 'Tariffs may have been the final nail in the coffin but to put all or even most of the blame on tariffs wouldn't be fair,' she said. 'It's been a perfect storm of things beyond the retailers' control.' For many, the problems started long ago. When some shoppers moved online, many retailers misjudged the moment. They either didn't focus on e-commerce enough or leaned too far into it, cannibalizing their brick-and-mortar business. Others had a product mix that wasn't enticing customers away from competitors or pushing them to spend as their expenses rose. When the pandemic arrived, it magnified these issues and caused some companies to rethink their entire business models, only for new tariffs to emerge and take aim at their supply chains and pricing. The succession of troubles left companies taking on more and more debt to cover bills like rent, which in some cases, had become insurmountable. 'We in the insolvency community call it a reckoning of zombie companies,' said Kovacevic. Zombie companies are businesses so unable to generate enough revenue to operate the business, they rely on debt to stay alive. The number of Canadian zombie firms has been rising over the past few decades, with recent studies showing that the country's share could potentially be the highest in the world, researchers from Statistics Canada and the federal Department of Finance concluded in 2023. Basso attributes some of the increase to the loans and other financial support the federal government offered during the pandemic to companies that might not have been able to borrow that money. 'They had issues before the pandemic and would otherwise have gone down or been forced to restructure during the pandemic,' he said. 'The loans I think helped them have a chance to continue but are now saddling the balance sheets with debt ... they have no ability to pay off.' Such situations have driven many companies to their death. Others have looked for a way forward through the court system or businesses like Gordon Brothers, which are involved with appraisals, liquidation, fundraising and restructuring. At the start of the month, Gordon Brothers helped Canadian home goods and accessories retailer Linen Chest secure $35 million in credit to increase its 'liquidity and support future growth.' In December, it gave $120 million in financing to Toys 'R' Us Canada Ltd., which has been closing stores and building play centres at others. What all the companies Gordon Brothers has dealt with lately have in common is that the dynamics of their business — from supply chains to consumer demand — are 'changing much more quickly' than before the pandemic, said chief transaction officer Kyle Shonak. 'There's a lot of variables out there and unfortunately, there's no silver bullet for any of it,' he said. Some, like furniture businesses, have a glut of inventory from the pandemic, when people were feverishly revamping homes. As demand dropped, they didn't curtail production. Now, they need Gordon Brothers to help them offload pieces they have, ideally for the most money possible while setting up the business to avoid falling into the same trap again. At the same time, these companies and others are looking to Gordon Brothers to help them evaluate whether they have to raise prices or move production, storage or distribution of their products to cope with current tariffs or other crises that could be on their way. Gordon Brothers can help clients identify which of their products are less tariff prone or drum up financing to help those needing to switch manufacturers, but Shonak said, customers ultimately pay the price. 'The consumer at the end of the day is the one that pays for a lot of this stuff as it passes its way through the chain, but it affects everyone,' he said. This report by The Canadian Press was first published June 18, 2025. Tara Deschamps, The Canadian Press
Yahoo
18-06-2025
- Business
- Yahoo
Retailers are in trouble and there's more to come: insolvency, restructuring experts
The fall of Hudson's Bay and Saks Fifth Avenue Canada may give the impression that one of the hottest trends this year is the distressed look, but retail and insolvency experts say the company's demise is part of a now-annual pitter-patter they expect to continue. Since the COVID-19 pandemic, they've seen hundreds of retail businesses reach the brink every year. As a result, some restructured, others reduced their store count — and many closed for good. What they've observed mirrors federal government data showing insolvencies and bankruptcies in the retail sector have been rising over the past four years after a roughly 25-year decline. The latest data comes from April, when Canada recorded 56 insolvencies and 46 bankruptcies. A month earlier, the Bay filed for creditor protection, making it one of four retail companies that sought a reprieve in the first quarter of the year. "The Hudson's Bay Company ... was kind of like a big flag for everyone and I think is setting the expectation that retailers are in trouble and there's more to come," said Michael Basso, a partner in business restructuring and turnaround services for accounting firm BDO Canada. Experts, including Basso, say the trend is a reflection of many businesses that haven't been able to catch a break between the slow rebound from the health crisis, see-sawing consumer demand and a global tariff war. "A lot of them have been just barely staying afloat since the pandemic ... so when the tariffs happened, they probably just couldn't withstand one more thing at that point," said Dina Kovacevic, editor of Insolvency Insider, a Canadian newsletter detailing bankruptcy and creditor protection news. This year's onslaught has not just toppled Canada's oldest company, Hudson's Bay, but also left shopping districts without Montreal apparel business Frank and Oak and farm goods store Peavey Mart. Ricki's, Cleo and Bootlegger-owner Comark Holdings Inc., Vancouver clothing brand Oak + Fort and eyewear chain Hakim Optical got in on the action as well, filing for creditor protection and beginning restructurings. Several framed their troubles around the COVID crisis or pointed the finger at U.S. President Donald Trump's penchant for tariffs, but Kovacevic said "the retail industry has been struggling for some time." "Tariffs may have been the final nail in the coffin but to put all or even most of the blame on tariffs wouldn't be fair," she said. "It's been a perfect storm of things beyond the retailers' control." For many, the problems started long ago. When some shoppers moved online, many retailers misjudged the moment. They either didn't focus on e-commerce enough or leaned too far into it, cannibalizing their brick-and-mortar business. Others had a product mix that wasn't enticing customers away from competitors or pushing them to spend as their expenses rose. When the pandemic arrived, it magnified these issues and caused some companies to rethink their entire business models, only for new tariffs to emerge and take aim at their supply chains and pricing. The succession of troubles left companies taking on more and more debt to cover bills like rent, which in some cases, had become insurmountable. "We in the insolvency community call it a reckoning of zombie companies," said Kovacevic. Zombie companies are businesses so unable to generate enough revenue to operate the business, they rely on debt to stay alive. The number of Canadian zombie firms has been rising over the past few decades, with recent studies showing that the country's share could potentially be the highest in the world, researchers from Statistics Canada and the federal Department of Finance concluded in 2023. Basso attributes some of the increase to the loans and other financial support the federal government offered during the pandemic to companies that might not have been able to borrow that money. "They had issues before the pandemic and would otherwise have gone down or been forced to restructure during the pandemic," he said. "The loans I think helped them have a chance to continue but are now saddling the balance sheets with debt ... they have no ability to pay off." Such situations have driven many companies to their death. Others have looked for a way forward through the court system or businesses like Gordon Brothers, which are involved with appraisals, liquidation, fundraising and restructuring. At the start of the month, Gordon Brothers helped Canadian home goods and accessories retailer Linen Chest secure $35 million in credit to increase its "liquidity and support future growth." In December, it gave $120 million in financing to Toys "R" Us Canada Ltd., which has been closing stores and building play centres at others. What all the companies Gordon Brothers has dealt with lately have in common is that the dynamics of their business — from supply chains to consumer demand — are "changing much more quickly" than before the pandemic, said chief transaction officer Kyle Shonak. "There's a lot of variables out there and unfortunately, there's no silver bullet for any of it," he said. Some, like furniture businesses, have a glut of inventory from the pandemic, when people were feverishly revamping homes. As demand dropped, they didn't curtail production. Now, they need Gordon Brothers to help them offload pieces they have, ideally for the most money possible while setting up the business to avoid falling into the same trap again. At the same time, these companies and others are looking to Gordon Brothers to help them evaluate whether they have to raise prices or move production, storage or distribution of their products to cope with current tariffs or other crises that could be on their way. Gordon Brothers can help clients identify which of their products are less tariff prone or drum up financing to help those needing to switch manufacturers, but Shonak said, customers ultimately pay the price. "The consumer at the end of the day is the one that pays for a lot of this stuff as it passes its way through the chain, but it affects everyone," he said. This report by The Canadian Press was first published June 18, 2025. Tara Deschamps, The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-06-2025
- Business
- Yahoo
Collective Mining Announces Voting Results from its 2025 Annual Meeting of Shareholders
TORONTO, June 16, 2025 /CNW/ - Collective Mining Ltd. (NYSE: CNL) (TSX: CNL) ("Collective" or the "Company") is pleased to announce the voting results from its Annual General Meeting of Shareholders ("Meeting") held on June 16, 2025. Shareholders voted in favour of all matters of business before the Meeting. Each of those matters is set out in detail in the Management Information Circular published in connection with the Meeting, which is available at Sedar+ and A total of 49,069,143 common shares, representing approximately 57.8% of the Company's outstanding common shares, were voted by proxy at the Meeting. Shareholders voted in favour of appointing BDO Canada LLP as auditors of the Company (99.9% in favour). Shareholders also voted on the following matters at the Meeting: Election of Directors The following nominees listed in the Management Information Circular were elected as directors of the Company until the next annual meeting of shareholders or until their successors are elected or appointed, with the votes being cast by ballot and the results being as follows: Nominee Votes For Votes Withheld Ari Sussman 48,873,509 336 Ashwath Mehra 48,873,509 336 María Constanza García Botero 48,873,509 336 Jasper Bertisen 48,873,409 436 Angela María Orozco Gómez 48,469,579 404,266 About Collective Mining Ltd. To see our latest corporate presentation and related information, please visit Founded by the team that developed and sold Continental Gold Inc. to Zijin Mining for approximately $2 billion in enterprise value, Collective is a gold, silver, copper and tungsten exploration company with projects in Caldas, Colombia. The Company has options to acquire 100% interests in two projects located directly within an established mining camp with ten fully permitted and operating mines. The Company's flagship project, Guayabales, is anchored by the Apollo system, which hosts the large-scale, bulk-tonnage and high-grade gold-silver-copper-tungsten Apollo system. The Company's objectives are to improve the overall grade of the Apollo system by systematically drill testing newly modeled potentially high-grade sub-zones, expand the Apollo system by stepping out along strike to the north and expanding the newly discovered high-grade Ramp Zone along strike and to depth, and drill a series of less advanced or newly generated targets including Trap, the Knife and X. Management, insiders, a strategic investor and close family and friends own 44.5% of the outstanding shares of the Company and as a result, are fully aligned with shareholders. The Company is listed on both the NYSE American and TSX under the trading symbol "CNL". Information Contact: Follow Executive Chairman Ari Sussman (@Ariski73) on X Follow Collective Mining (@CollectiveMini1) on X, (Collective Mining) on LinkedIn, and (@collectivemining) on Instagram FORWARD-LOOKING STATEMENTS This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities legislation (collectively, "forward-looking statements"). All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always using phrases such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the anticipated advancement of mineral properties or programs; future operations; future recovery metal recovery rates; future growth potential of Collective; and future development plans. These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding future events including the direction of our business. Management believes that these assumptions are reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: risks related to the speculative nature of the Company's business; the Company's formative stage of development; the Company's financial position; possible variations in mineralization, grade or recovery rates; actual results of current exploration activities; conclusions of future economic evaluations; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, precious and base metals or certain other commodities; fluctuations in currency markets; change in national and local government, legislation, taxation, controls regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formation pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to properties, as well as those risk factors discussed or referred to in the annual information form of the Company dated March 24, 2025. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and there may be other factors that cause results not to be anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements. SOURCE Collective Mining Ltd. View original content to download multimedia: Sign in to access your portfolio
Ottawa Citizen
20-05-2025
- Business
- Ottawa Citizen
Community Builders: Gold Plate Dinner
A dash of glamour, a sprinkle of generosity and a whole lot of heart — the 37th annual Gold Plate Dinner delivered it all on Tuesday, May 13, at the Infinity Convention Centre. The sold-out dinner hosted 650 guests who gathered for one of Ottawa's most anticipated fundraising events, raising money for the University of Ottawa Heart Institute and the Hellenic Community of Ottawa's cultural and language programs. Since its inception, the dinner has raised more than $3 million for local causes. The evening was filled with food, laughter and connections as business leaders from across the city mingled over cocktails, shared stories and took part in the evening's signature $30,000 elimination draw. Natasha Laidlaw from BDO Canada was the lucky winner, walking away with a choice between cash or a brand-new Mercedes-Benz from Star Motors of Ottawa. Guests didn't stop at dessert — the night was capped off with a high-energy after-party that kept the celebration going. With a mix of networking, philanthropy and a little luxury, the Gold Plate Dinner continued to prove it's more than just a night out, it's a cornerstone of Ottawa's charitable spirit. Article content Article content Article content Article content Article content Article content Article content Article content Article content Article content Article content Article content Article content Article content Article content
CBC
08-03-2025
- Business
- CBC
Tariff threats are freezing big business and leaving small companies with no options
Social Sharing Millions of dollars and thousands of jobs are in flux for Canadian businesses, as constant changes to tariffs mean companies based in this country are either avoiding financial decisions or feel they are unable to make them. From large multinationals to small outfits with less than a dozen employees, the repetitive cry of "uncertainty" is causing more than just confusion. It's influencing financial decisions for big players, and freezing smaller companies in their tracks. For Kun Shoulder Rest, it's the latter. The company is globally known for the violin and viola ergonomic accessories it makes in, and exports from, Ottawa. "If you don't play the violin, you will never have heard of a shoulder rest. If you do play the violin, you will know our brand," said Juliana Farha, one of the company's directors. But despite its international profile, the company does not have the resources to simply pivot to new markets when faced with on-again, off-again tariffs on products sold in the United States. "It's our biggest market and that represents 35 to 40 per cent of our global market," said Farha, who explained that the company relies on students, amateurs and younger violinists and violists to buy its product . A shoulder rest is typically bought once and kept for years, if not decades. Small businesses cannot easily pivot Essentially, the company cannot pivot every time tariff policies change to try and replace potential American customers. There aren't exactly millions of extra violinists in the rest of the world, and Kun has already expanded into international markets such as Europe. "The feeling of recklessness of all of this has created tension and uncertainty for us," according to Farha, who is also concerned that some international competitors won't be facing the same tariffs as her Canadian company, making its products seem even less competitive. In a scenario like this, business and economic experts say businesses may need to bite the bullet and either hope their customers will accept a higher price, or lose money themselves. "Companies either have to say, 'We want to maintain our customer base, therefore we are going to absorb that additional cost,' or pass it on to their actual customers," said Charmaine Goddeeris, director of customs and international trade with consulting firm BDO Canada. Goddeeris points out that many companies may need to determine whether they want to keep doing business in the United States at all. "If yes, then you're going to have to come to the United States so you can solidify [being] made in America," she said, since such products ostensibly would not face tariffs when sold there. That's not a decision a small business can make easily — or at all — without having to completely relocate. Not so much for larger companies, which may have the financial ability to split production between countries. Big companies holding off investment But larger corporations that could afford to spend the money are frozen these days, too. With tariff policies constantly changing — in some cases on both sides of the border — many large businesses are just waiting until the dust settles to invest their cash. KP Tissue manages and owns part of Kruger, Canada's largest toilet paper and tissue manufacturer. The company announced in a recent earnings call that it would be delaying construction of a new tissue plant. It currently operates facilities in both Canada and the United States, and it was unclear what country the new plant would be in. In a statement emailed to CBC News, a Kruger representative said when the company originally announced looking into a new plant in early December, it had believed it could announce the results of that evaluation in early 2025. WATCH | Small business and giant corporations are stuck as tariffs keep changing: Tariff rollercoaster leaves Canadian companies stuck at a standstill 1 day ago Duration 1:55 But now, it says things are too questionable. "The current business uncertainty will require us to complete additional due diligence prior to making an official announcement," wrote François Paroyan, general counsel for Kruger. In the earnings call, KP Tissue's CEO blamed more than the Trump tariffs for all the uncertainty ahead, citing reciprocal tariffs from Canada, a drop in the Canadian dollar, and a possible recession as factors in freezing its actions. The company also didn't provide profit estimates for the next few months for the same reasons. It did estimate that between $600 million and $700 million of its revenue is "exposed" to tariffs in some way. 'Have to keep your iPhone nearby' Algoma Steel is in a similar position. The Canadian manufacturer employs thousands who face unpredictable announcements on when general tariffs might be applied or lifted, along with specific steel tariffs that could directly impact its business. "You have to keep your iPhone nearby. And, you know, as soon as I get off this interview, I'll check the news ticker to see what might have changed," said Michael Garcia, CEO of the Sault Ste. Marie, Ont.-based company. During Garcia's interview with CBC News, U.S. President Donald Trump announced what seemed like a temporary suspension of some tariffs. At the time, it was unclear whether that would apply to steel, or whether the global steel-specific tariffs that Trump had announced in early February would still apply. It was a perfect example of what is making business decisions potentially worth hundreds of millions of dollars impossible. "I don't know what that delay means other than we could be here in less than a month, kind of going through the same motions. Is there going to be a tariff? Oh my, there's a tariff. Now what are we going to do?" said Garcia. One thing he can point out definitively is that the company is avoiding spending money where it can. "We are placing a very high focus on preserving our cash and reducing as much discretionary spending as possible," said Garcia. For now, this uncertainty means fewer investments, period, from a large business in Canada. Big or small, businesses are struggling: economist It's a pattern the chief economist of the Canadian Federation of Independent Business is seeing first-hand in feedback from his organization's members. "Because there are so many decisions that are being overturned or changed, businesses have a hard time actually adjusting," said Simon Gaudreault. With fear and uncertainty all over the Canadian economy right now, business optimism is low, he said. That translates into frozen hiring and pauses on investment, he said, and businesses may avoid developing new markets until they know more clearly what's going to happen. And that may not be in the cards just yet.
