COTTON GINNY SELLS DIVISION TO CONTINENTAL SAXON
By Adnews Staff
Toronto-based retailer Cotton Ginny has reached an agreement in principal to sell the assets of its Cotton Ginny division. The buyer, Continental Saxon Group of Toronto, will receive Cotton Ginny's 110 retail locations as well as its warehouse and head office facilities in Toronto. Under the sale agreement Continental Saxon is also authorized to offer employment to Cotton Ginny employees. The financial details of the sale, which requires the approval of the Ontario Supreme Court of Justice, are not known. Cotton Ginny is restructuring in an attempt to reduce costs and generate capital after receiving a court order under the Companies' Creditors Arrangement Act last month. As part of that attempt, the company received approval to close 95 stores. Its 90 Tabi International retail stores in Canada operate as a separate division, unaffected this filing. Public relations for Cotton Ginny are handled by Hill & Knowlton Canada of Toronto.