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Clothing for Modern Times Ltd.

CCAA Proceedings

Clothing for Modern Times Ltd. ("CMT") is an Ontario incorporated company that operates Urban Behaviour, Costa Blanca and Costa Blanca X retail stores in shopping malls across Canada. CMT's business consists of the sale of men and women's clothing and related accessories.  CMT also leases its head office at 300 Supertest Road, Toronto, Ontario.

CMT filed a Notice of Intention to Make a Proposal ("NOI") pursuant to the provisions of the Bankruptcy and Insolvency Act ("BIA") on Monday, June 27, 2011 and A. Farber & Partners Inc., a member of Farber Financial Group ("Farber") was appointed as Proposal Trustee.

The time for CMT to file a propsal expires on December 22, 2011.  There are no further extensions of time to file a proposal under the BIA.  CMT has determined that a going concern sale of the Costa Blanca business and assets would be in the best interests of all stakeholders; however, CMT will not have sufficient time to conduct a sales process and finalize a sale agreement before December 22, 2011.

Accordingly, on December 16, 2011, the Ontario Superior Court of Justice (Commercial List) granted an order (the "Initial Order") declaring that effective December 22, 2011, CMT's restructuring proceeding commenced under the BIA is now continued under the Companies' Creditors Arrangement Act and that as of such date, the provisions of the BIA shall have no further application to CMT, save that any and all steps, agreements and procedures validly entered into or taken by CMT during the proposal process shall remain valid and binding notwithstanding the termination of the proposal process under the BIA and commencement within the CCAA proceeding.  The Initial Order provides for a stay of proceedings up to and including January 23, 2012, or such later date as this Court may order.

The Initial Order provided that the Monitor, with the assistance of Ernst & Young Orenda Corporate Finance Inc., be approved to immediately conduct a process for the sale of CMT's business and assets used in connection with the business carried under the retail banner Costa Blanca in accordance with the sales process described in the Initial Order (the "Sales Process"). The Sales Process requires that all offers for the Costa Blanca business are to be submitted by the offer bid deadline of January 16, 2011 or such other date as the Monitor may permit.

For enquiries regarding the CMT investment opportunity, please contact Hylton Levy at (416) 496-3070 or hlevy@farberfinancial.com.

On January 20, 2012, CMT was granted an Order extending the stay period set out in the Initial Order to February 27, 2012.  The extension of the stay period allows the Monitor to review the offers received for the Costa Blanca business and negotiate and complete an agreement of purchase and sale with a prospective purchaser.

On February 17, 2012, CMT was granted an Order extending the stay period set out in the January 20, 2012 Order to March 27, 2012.

On March 27, 2012, CMT was granted an Order extending the stay period set out in the February 17, 2012 Order to May 18, 2012.

The purpose of this website is to provide documents to any interested persons regarding the CCAA proceeding of this company. The documents listed below are in PDF format and can be viewed and/or downloaded. Please feel free to return to this website periodically for future updates on the status of these proceedings. Additional documents and information will be posted as it becomes available.

CCAA Notice to Creditors

CCAA Motions

CCAA Orders

CCAA Reports

CCAA Other Documents

 

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Notice of Intention to Make a Proposal and related Proceedings (commenced June 2011)

Clothing for Modern Times Ltd. ("CMT") is an Ontario incorporated company that operates Urban Behaviour and Costa Blanca branded apparel retail store chains in 116 leased locations in shopping malls across Canada.  CMT's business consists of the sale of men and women's clothing and related accessories.  CMT also leases its head office at 300 Supertest Road, Toronto, Ontario.

CMT filed a Notice of Intention to Make a Propsal ("NOI") pursuant to the provisions of the Bankruptcy and Insolvency Act ("BIA") on Monday, June 27, 2011 and A. Farber & Partners Inc., a member of Farber Financial Group ("Farber") was appointed as Proposal Trustee.

The effect of the NOI is that it provides an initial 30-day stay of proceedings over all amounts owing to creditors effective June 27, 2011 (i.e. all amounts outstanding at June 27, 2011 and prior) whilst the Company formulates a Proposal to its creditors.  Please note that CMT is not bankrupt, but has availed itself of a procedure whereby an insolvent person, with creditor and Court approval, restructures its financial affairs.

On Monday, July 11, 2011, the Company brought a motion on the Commercial List seeking an Order, inter alia, approving the post-filing financing arrangements with Roynat, approving the establishment of the administrative professional’s charge as contemplated, approving a liquidation sales process of 21 stores, and approving a Key Employee Retention Plan for employees affected by the liquidation of these 21 stores. A copy of the Court Order and endorsement of the Honourable Madam Justice Hoy dated July 11, 2011 is posted below.

On July 22, 2011, CMT was granted a 45-day extension to file its proposal pursuant to an Order of the Honourable Madam Justice Hoy of the Ontario Superior Court of Justice.  CMT has until September 12, 2011 to file a proposal to its creditors. In addition to the extension granted, an Order was granted approving the commencement of a marketing and sales process for the Urban Behavior and Costa Blanca X chains as a going concern or on a liquidation basis. In addition, CMT obtained approval to:

a) conduct self-liquidation sales at seven additional store locations;

b) extend the Key Employee Retention Plan for Key Store Employees employed at these additional liquidations;

c) conduct a sale and removal of fixtures for certain stores in accordance with approved guidelines; and

d) create a charge in favour of certain CMT real property landlords.

On September 23, 2011, CMT was granted a 45 day extension to file its Proposal by the Honourable Justice Morawetz of the Ontario Superior Court of Justice. CMT has until November 7, 2011 to file a proposal to its creditors.

On November 7, 2011, CMT was granted a further 45 day extension to file its Proposal by the Honourable Justice Morawetz of the Ontario Superior Court of Justice.  CMT has until December 22, 2011 to file a proposal to its creditors. In addition, CMT was granted approval by the Court to:

a) conduct self-liquidation sales at twenty-five additional store locations;

b) extend the Key Employee Retention Plan for Key Store Employees employed at these additional liquidations;

c) complete a Sale Agreement between 7951388 Canada Inc. ("795") and CMT for the going concern sale of the Urban Behaviour business and assets;

d) vesting title to the purchased assets described in the Sale Agreement in 795 free and clear of all claims and encumbrances;

e) complete the Asset Purchase Agreement between Boathouse West Inc. and CMT for the sale of the lease, leasehold interests and fixtures of the Urban Behaviour store located at Midtown Plaza, in the city of Saskatoon, Saskatchewan (the "Midtown Store"); and

f) conduct a self liquidation of the Midtown Store.

The purpose of this website is to provide documents to any interested persons regarding the Proposal of this company.  The documents listed below are in PDF format and can be viewed and/or downloaded.  Please feel free to return to this website periodically for future updates on the status of these proceedings.  Additional documents and information will be posted as it becomes available.

 
NOI Documents Reports

Court Orders