Toronto Retailer Mendocino to Close Stores, File Under Insolvency Act

Mendocino Clothing Co., a Toronto-based retailer, has begun restructuring proceedings and plans to close stores to focus on online orders, Bloomberg News reported. The closely-held company filed a notice of intention to make a proposal under Canadian bankruptcy law on July 14, according to documents posted on the website of KSV Kofman Inc., the trustee. The documents listed Toronto-Dominion Bank as a secured creditor owed C$2.69 million ($1.99 million) and a further C$5.78 million owed to unsecured creditors including American Express and OPGI Mgmt. “As a result of challenges resulting from the pandemic, the company recently made the very difficult decision to discontinue all or substantially all of their store operations and to focus on an e-commerce model,” the trustee said in the documents. Read more