Description: Fashion chain Reitmans is exiting creditor protection after 20 months. The company, with HQ in Montreal, has paid its creditors roughly $95 million, about 1/2 of the amount owing based on public disclosures provided by the monitor Ernst & Young Inc. in September 2020. Between its Reitmans brand and its related stores, RW&CO and Penningtons, the clothier operates over 400 stores.
Date: January 12, 2022
1) Are you a shopper at Reitmans or any of its related parties?
2) Why would a company such as Reitmans seek protection under the Companies’ Creditors Arrangement Act as opposed to the Bankruptcy Act?
3) Chapter 12 of Wiley’s Financial Accounting: Tools for Business Decision Making discusses the reporting and analysis of investments, including investments in other companies. Check out the financial statements for Reitmans to determine how the investments in RW&CO and Penningtons are accounted for.