Hart Stores Inc.'s Plan of Arrangement (the “Plan”) was sanctioned by the Superior Court of Québec on February 27, 2012, following the prior acceptance of the Plan at the Creditors' Meeting held on February 15, 2012. On August 30, 2011, Hart Stores Inc. had obtained an Initial Order under the Companies' Creditors Arrangement Act (“CCAA”), and RSM Richter Inc. was appointed Monitor. At that time, Hart Stores Inc. operated a chain of 92 mid-size general department stores under the “Hart”, “Bargain Giant” and “Géant des Aubaines” banners. The stores had approximately 1,488 active employees.
During the course of its restructuring, Hart Stores Inc. obtained DIP financing from Wells Fargo Capital Finance Corporation Canada, closed 32 underperforming stores, liquidated excess inventory and obtained replacement financing.
Hart Stores Inc. was represented in the CCAA proceedings by Heenan Blaikie LLP, through a team led by Michael Hanlon, which included Nicolas Plourde, John Salmas, Sara Wilson, Stephen Hart and Claude Pelletier.
RSM Richter Inc. was advised by Alain Tardif of McCarthy Tétrault LLP. Wells Fargo was represented by Jean Anderson, Joe Latham and Derek Bulas of Goodmans LLP, and by Jean-Yves Simard of Lavery, de Billy L.L.P.
On February 29, 2012, as part of the implementation of its Plan, Hart Stores Inc. closed its exit financing, putting into place a $25,000,000 revolving credit facility made available by CIBC Asset Based Lending. Hart Stores Inc. was represented by Heenan Blaikie, by a team comprising Joel Cabelli, Marie-Josée Couture and Louis-Philippe Borduas. CIBC was represented by Norton Rose Canada LLP, by a team comprising Kevin Morley, Arnold Cohen and Adrienne Glen.