Chinese discount retailer Miniso Group has secured creditor protection for its Canadian operations, through an initial order of the Supreme Court of British Columbia (BC).
The order also offers for a stay of proceedings in favour of the retailer for an initial period of ten days and the appointment of Alvarez & Marsal Canada as monitor in the Companies’ Creditors Arrangement Act (CCAA) proceedings.
Made under the CCAA, the initial order allows Miniso Canada to receive interim financing of up to C$2m ($1.53m) from the group.
The financing will allow Miniso Canada to receive sufficient liquidity to maintain its business operations through to the completion of the CCAA proceedings.
The retailer will also continue to serve customers as usual across its stores in Canada.
Miniso Canada currently operates 67 stores in BC, Alberta, Ontario, Quebec, Nova Scotia and the Northwest Territories.
Miniso Group said: “Miniso Canada, Miniso Group and the monitor will work to complete the restructuring in a timely fashion with hopes that the Miniso footprint and brand in Canada will continue to expand in the near term.”
Earlier this month, Miniso Group announced that it has been working closely with Migu Investments, the licensed Miniso store operator in Canada and its related entities, to normalise and revitalise the Canadian operations.
The group also noted that it has supplied 100 containers of new stock, worth $8.5m, to support the retail operations in Canada and an additional 40 container loads to ensure retail outlets have full inventory. It also offered $1.5m in working capital in support of Migu’s Canadian operations.
In December last year, Miniso Group appealed to the BC Supreme Court to have Migu Investments declared bankrupt.
The group also wanted a trustee to operate the 50 Miniso stores in Canada.
According to court petition, the group is owed $20m for loans and stock shipped to the Canadian operations.