On January 31, 2008, Linda Lundstrom Inc. ("LLI")
filed a Notice of Intention to Make a Proposal under the Bankruptcy and
Insolvency Act (Canada) (the "Act"). LLI is currently reviewing its
options in attempting to formulate a restructuring Proposal to its
creditors.
By March 4, 2008, LLI failed to obtain an extension to
file, or file, its Proposal, and accordingly, it was deemed to have filed an
assignment in bankruptcy on March 4, 2008 in accordance with the Act. The LLI
First Meeting of Creditors is scheduled for 11:00 AM on March 20, 2008, 255
Wicksteed Avenue, Toronto.
SALE OF ASSETS
Effective March 27, 2008, Ira Smith Trustee &
Receiver Inc. was also appointed Receiver of the assets, properties and
undertaking of LLI pursuant to security held by The Toronto-Dominion Bank, with
limited specific powers. On March 28, 2008, the liquidation sale run by Danbury
Industrial stopped. On March 31, 2008, as Receiver, the assets of LLI were sold
en bloc to a purchaser who is going to continue the business of LLI from its
Wicksteed Avenue premises. This purchaser has also retained the services of Ms.
Linda Lundstrom to ensure that her creative vision and energy continues. Many
of the former LLI employees have been provided with offers of employment to
continue in their positions with the purchaser.
The sales proceeds were not sufficient to fully repay
all the secured creditors and accordingly, there will not be any distribution
to the unsecured creditors in the bankruptcy.
IMPORTANT NOTICE TO CUSTOMERS WHO PAID DEPOSITS OR
WHO ARE HOLDING GIFT CERTIFICATES
Please be advised that gift
certificates cannot be honoured at the sale locations. Holders of gift
certificates, as well as customers, who paid deposits for goods not received
prior to the date of bankruptcy, are unsecured creditors and must file the
relevant proof of claim in the respective bankruptcy.
CUSTOMERS WHO
PAID FOR GIFT CERTIFICATES OR MADE DEPOSITS BY CREDIT CARD, SHOULD MAKE A CLAIM
FOR REIMBURSEMENT FROM YOUR CREDIT CARD COMPANY, RATHER THAN FILING A CLAIM IN
THE RESPECTIVE BANKRUPTCY. YOU WILL BE REQUIRED TO PROVIDE PROOF OF THE
BANKRUPTCY TO YOUR CREDIT CARD COMPANY, WHICH CAN BE DOWNLOADED FROM THIS
PAGE.
On February 4, 2008, 1481673 Ontario Limited, which operated
the Linda Lundstrom retail store in the Fallsview Casino, Niagara Falls, ON,
filed an assignment in bankruptcy. The store ceased operating at the date of
bankruptcy.
On February 5, 2008, each of Lundstrom Retail (Bayview)
Inc. ("Bayview") and Lundstrom Retail (Yorkville) Inc.
("Yorkville") each filed an assignment in bankruptcy.
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