TORONTO – An Ontario court has recently authorized Comark Holdings Inc. to proceed with the sale of its Ricki’s and Cleo retail banners to Putman Investments Inc., a company based in Ancaster, Ontario, which also owns Toys “R” Us Canada, HMV, and Northern Reflections. This decision, made by Judge Peter Cavanagh, comes during a challenging period for Comark, which has been facing financial difficulties.

The approved sale transaction, valued at approximately $12.8 million, encompasses a broad array of assets. Specifically, it includes all inventory, furnishings, intellectual property, trademarks, and select leases associated with the ailing apparel retailers Ricki’s and Cleo. In a positive development for employees, the filings indicate that the majority of retail staff will be offered positions with Putman Investments following the acquisition.

Moreover, Judge Cavanagh has also sanctioned a stalking horse sales process related to Comark's other brand, Bootlegger. This decision arose against a backdrop of renewed interest from Warehouse One, a jeans retailer looking to engage in the bidding process. Stalking horse sales processes are characterized by an initial bidder making a low offer for a troubled company's assets, strategically positioning themselves as a baseline offer that cannot be underbid later.

Last month, Cavanagh granted Comark creditor protection, a legal safeguard that assists companies in distress. Concurrently, it was announced that all Ricki’s and Cleo retail locations would be closed, reflecting the broader struggles within the textile and retail markets. This strategic move aims to facilitate the ongoing reorganization efforts of Comark Holdings Inc.

As this story unfolds, the future of Comark Holdings, along with its brands, remains critical to monitor. The judicial approval of these sales signifies a potential shift in the operational landscape for the affected retail brands and signifies hope for their continued existence under new ownership.