CEO resigns, announces Goodwill to proceed with bankruptcy

TORONTO -- Goodwill Industries of Toronto, Eastern, Central and Northern Ontario says efforts to restructure have been unsuccessful and it's going bankrupt.

See Full Article

Keiko Nakamura, who has resigned as Goodwill's CEO, said Monday in a statement that she has concluded there is no viable option that allows the organization to re-emerge from the bankruptcy process.

Nakamura says a revival plan to reopen profitable stores, although feasible, cannot be achieved without significant financial investment and the lack of security for a loan is an untenable risk for potential investors.

Of the $6 million debt, approximately $4.2 million is owed to former employees in vacation entitlement and severance.

The trustee, Pollard & Associates Inc., has called a meeting with creditors for March 2.

Last month, the charitable organization announced it would close 16 stores, 10 donation centres and two offices due to cash flow problems, affecting more than 430 workers.

"This loss severely disrupts the lives of former staff, many of whom may experience difficulty in finding an equivalent replacement position," Nakamura said.

She said the community has lost a reliable way of disposing of goods that are no longer needed while at the same time supporting the community, while shoppers are left with fewer sources for reasonably priced goods.

The proposed restructuring plan would have required loans or investments of $2 million as an opening balance to assist in the payment of arrears and any reopening costs.

It would also have needed concessions from the unionized staff, including a reduction in hours, layoffs, labour efficiency improvements, and benefit costs.

Apart from staff, the other creditors include landlords of leased properties.



Advertisements

Latest Economic News

  • Feathers fly as chicken shortage shuts KFCs across Britain

    Economic CTV News
    LONDON - Fast-food chain KFC has been forced to close most of its 900 outlets in Britain and Ireland because of a shortage of chicken The company is blaming "teething problems" with its new delivery partner, DHL. Source
  • N.L. unveils 12-year plan for offshore oil, gas development

    Economic CTV News
    ST. JOHN'S, N.L. -- Cash-strapped Newfoundland and Labrador has announced a 12-year plan to speed and enhance development of its offshore oil and gas resources. The province will review regulations and advance tie-back technology to allow more extraction at existing sites with less cost. Source
  • N.L. unveils plan to double oil production by 2030

    Economic CBC News
    The Newfoundland and Labrador government launched a new plan on Monday for growing its oil and gas sector. Highlights of Advance 2030 include doubling offshore oil production by 2030 through reducing development time for projects. Targets for the plan include drilling more than 100 new exploration wells, and tapping into multiple basins to produce more than 650,000 barrels of oil per day from new and existing projects, as well as commercial natural gas production. Source
  • Your auto insurance will be cheaper if you sign up in this month: LowestRates.ca

    Economic CTV News
    Your auto insurance rate is cheaper if you sign up when the weather is warm. That’s the key takeaway from a two-year price analysis by LowestRates.ca. The financial product comparison website found that rates quoted in Ontario were at their lowest between July and October, dipping by as much as six per cent in August 2017 from the annual average. Source
  • Canadian lumber producers buoyant about 2018 with high hopes for duties

    Economic CTV News
    MONTREAL - Softwood lumber duties aren't dampening the spirits of Canadian lumber producers as strong demand from rising U.S. housing starts and tight supply is expected to keep prices high throughout 2018. The number of U.S. Source
  • Markets rise as investors' jitters ease

    Economic CTV News
    SEOUL, Korea, Republic Of - Asian markets were higher on Monday following Wall Street gains last week, as investors' jitters showed signs of easing. Many major markets were closed on holidays. KEEPING SCORE: Japan's Nikkei 225 jumped 2 per cent to 22,149.21. Source
  • European shares drift lower as traders take a breather

    Economic CTV News
    LONDON -- European shares drifted lower Monday as investors paused for breath following a sizeable rally last week. Despite the move lower, there are few signs of the turmoil that gripped stock markets earlier this month. Source
  • European stock markets drift lower, North American markets closed for holidays

    Economic CTV News
    TORONTO - European stock markets drifted lower Monday while the major North American markets were closed for a holiday. In London, the FTSE 100 was down 49.79 points at 7,244.91 with less than an hour left in regular trading. Source
  • Montreal's Oreo cookie plant prepares to shut its doors

    Economic CTV News
    MONTREAL -- There was a time when the whole neighbourhood surrounding an east-end Montreal bakery would smell like baking Oreos. But that era comes to an end this month when snack-maker Mondelez International closes its Montreal factory for good. Source
  • Oilsands tech touted for pipeline capacity boost still years from deployment

    Economic CBC News
    Two years after a blue-ribbon panel called on the Alberta government to encourage partial upgrading of bitumen from the oilsands to enhance value and free up more pipeline room for exports, the idea remains years away from commercialization. Source