TORONTO – An Ontario court has granted Comark Holdings Inc. approval to sell its Ricki’s and Cleo banners to the owner of Toys “R” Us Canada, HMV and Northern Reflections.
Court filings show judge Peter Cavanagh allowed the sale of the ailing apparel retailers to Ancaster, Ont.-based Putman Investments Inc. earlier this month.
The filings say the approximately $12.8 million purchase includes all of the brands’ inventory, furnishings, intellectual property, trademarks and some of its leases. Most of the retail employees will be offered jobs by Putman.
Cavanagh also approved a stalking horse sales process involving Comark’s other brand, Bootlegger, after it drummed up interest from jeans retailer Warehouse One.
A stalking horse sales process generally starts with a bidder who makes an offer for the assets of a troubled company. The stalking horse typically makes their offer low so they can’t be underbid later.
Cavanagh granted Comark creditor protection last month, when the business also announced a plan to shutter all of its Ricki’s and Cleo locations.
This report by The Canadian Press was first published Feb. 18, 2025.
