CONSUMERS GOES BANKRUPT
By Adnews Staff
Consumers Distributing of Mississauga, Ont. was forced into bankruptcy last week by its four banks after failing to come up with a plan to save the company. The syndicate of four banks, led by the Royal Bank of Canada, petitioned to have the company put into receivership after the retailer could not meet pre-determined sales and profit targets. Coopers & Lybrand has been appointed receiver to run Consumers Distributing and try to find a buyer. The 80 remaining stores will continue to operate while the receiver reviews the situation. Consumers filed for court protection under the Companies Creditors Arrangement Act in July, owing about $250 million, including $86 million to the bank. The other banks are Bank of Montreal, Generale Bank SA/NV and Banque Nationale de Paris (Canada). Advertising for the retailer is done by Enterprise Advertising of Toronto.