August 24/20 16:28 pm - Garneau Files Creditor Proposal

Posted by Editor on 08/24/20
 

Louis Garneau Sports has finalized a debt-restructuring proposal for its creditors, nearly six months after filing for bankruptcy protection. The company stressed that the proposal is for the Canadian operation, including Sugoi and Sombrio; neither the U.S. or Mexican divisions were included in the original bankruptcy filing.

The proposal comes after LGS management requested an extension four times to finish the proposal. According to filings, the company owes $32.7 million to 503 creditors, with the Royal Bank ($11.4 million) and Investissement Quebec ($6.73 million) the largest creditors.

Founder Louis Garneau said to TVA Nouvelles, "I fought very, very hard, once again, to keep the company in Quebec with 100% Quebec financiers. There remains the acceptance of our creditors. I am very positive. A special thank you to all Quebec consumers and retailers who have continued to encourage us."

The creditors must approve the plan by a September 10th creditor's meeting.