CLOSURE: Major clothing chain sold to Ontario company with promise of jobs for ‘most’ employees

An Ontario court has granted the sale stores under the 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 Ontario-based Putman Investments Inc. earlier this month.

In early January, parent company Comark Holdings Inc. announced they would close all Ricki’s and Cleo retail store locations. The compnay also owns Bootlegger and some of those stores may remain open.

Liquidation company the Tiger Group announced a “major store-closing and inventory sell-off sale” at 217 Ricki’s Fashions, cleo Fashions and Bootlegger Clothing stores across Canada.

Sales started with discounts of 25 to 40 per cent off.

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.

– With files from INsauga.com