Alcanna’s 71% owned Canadian Liquor Retailer Alliance Limited Partnership (Alliance) has agreed to purchase 28 Solo Liquor Stores and related trademarks and brand.
FTI Consulting Canada was appointed as receiver of the assets, properties and undertakings of Solo Liquor Stores and Solo Liquor Holdings.
The deal covers 28 liquor stores and three additional leased locations that are yet to be opened, the Solo Liquor brand and all trademarks for $12.4m and inventory estimated at $3.4m.
Alcanna’s wholly owned subsidiary Liquor Stores Limited Partnership (LSLP) and Ace Liquor Corporation are the only limited partners of the Alliance. The Solo stores are expected to fit the current Ace and Liquor Depot stores network.
Approximately 90 Solo outlets, including opened, closed and those with unconditional leases were analysed by Alcanna and the Alliance before selecting the 28 locations.
Established in 1996, Solo Liquor Holdings expanded retail liquor operations with support from its ownership and management team.
Of the 28 acquired stores, 22 were operated during 2017 as Solo encountered financial and operational difficulty. The stores reported total sales of approximately $84.5m and $5.8m of in-store/four-wall EBITDA in 2017.
Alcanna will fund the transaction through its existing credit facilities. The deal is subject to customary conditions, including the court approval and vesting order to transfer the assets.
The deal is expected to close before 30 June this year.