Faced with significant financial hardship, the retailer quebec clothing Lolë is protected from its creditors Tuesday, by resorting to the bankruptcy and insolvency act.
“The retail industry is experiencing difficulties from a time already. But the COVID-19 has made the impossible things”, explained briefly the president of the board of directors, Bernard Mariette, when attached to his home Tuesday evening.
Developed by the Coalision (at the origin also of Storm and Paradox), brand Lolë has tried to make its place in the same niche (yoga/wellness) that Lululemon before it. The adventure proved to be more difficult than had been hoped; the documents filed with the court Tuesday, reported debts of nearly$ 47 Million.
Result: “over 90%” of the approximately 300 employees of the company of montreal have lost their jobs in recent weeks. Shaken, the one who also directed QuickSilver at another time said to dream of “light at the end of the tunnel”. “It is not earned, recognized Mr. Mariette. But I hope that with the hard work of all and each, we can find a solution”.
Of all of the accumulated debts, a total of 19,22 M$ (or 41%) are expected of the secured creditors and$ 27.6 Million (59%) of the unsecured creditors. In addition to the CIBC Bank, would be also Pellican II Investment Fund, and Simon Coalision, the two main shareholders of the company.
Among the group of shareholders of Coalision are also more discreetly, the names of the Red Moon, the company’s portfolio of Guy Laliberté, the man of affairs André Desmarais (Power Corporation), Pierre Servan-Schreiber, and members of the family of the luxury house Hermès.
The obvious difficulties of Lole in addition to those, also revealed by Aldo and Reitmans in the course of the last few weeks. The current president and chief financial officer of Coalision, the American Todd Steele, did not respond to our request for an interview.
In April 2015, the Fonds de solidarité FTQ participated in the form of a loan at the repurchase with M. Mariette of the majority stake held by Kilmer Capital Partners in Lole. A few months later, the company claimed sales in excess of$ 100 Million, 1,600 points of sale and 49 corporate stores in Canada, in Quebec and in Europe.