Chain of retail stores in Canada and United States were dramatically affected by economic downturns.

Canadian operations were put into bankruptcy, but were quickly converted to liquidation by creditors. Board was looking to avoid the same result with their US companies.

The company was not able to operate profitably for at least 18 months, was rapidly running out of cash, and unsecured credtiors were refusing to ship new merchandise. By working with unsecured and secured creditors, we were able to negotiate working capital credit facilities, and debt reductions. The concessions were sufficient to alow the firm to emerge from Chapter 11 with enough cash reserves to fund forecasted losses.