CANADA: Bankrupt Dylex Close To Fairweather Sale
The Toronto Globe and Mail reported that the company's interim receiver, Peter Farkas of Richter & Partners Inc, said there had been several expressions of interest in the 71-store Fairweather chain, while Ken Page, a lawyer for the National Apparel Bureau, said he knows of three "serious" potential buyers for Fairweather.
Mr Richter was appointed as interim receiver of Dylex late Friday. In a surprise move, Ontario Superior Court agreed to a request from creditors that Richter take control of the troubled retailer from the new US owner.
The court had heard a litany of complaints from creditors and employees about how they had been misled by the new owner, Hardof Wolf Group Inc.
The company continues to operate under protection from its creditors, even though the receiver was appointed under the Bankruptcy and Insolvency Act.
In the meantime, the court named the law firm Koskie Minsky to represent Dylex's 4,500 employees, including 3,400 from the BiWay store chain who lost their jobs after the stores unexpectedly closed soon after Dylex got court protection on August 3.
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