Tip Top will maintain nameplate store in Medicine Hat

As Tip Top Tailors works itself out of creditors protection it appears Medicine Hat may have lost one of the retail brand’s outlets, but will maintain the nameplate store.

Parent company Grafton-Fraser Inc. announced Wednesday that a deal had been reached to sell its assets to its largest creditor, U.S.based GSO Capital Partners.

It is advertized as a move to stabilize the Toronto-based retail business that entered court restructuring process in early 2017.

This spring the Carry Drive location of George Richards, a related menswear outlet, closed its doors, though the company’s corporate offices did not respond to questions seeking more information.

Reportedly, as part of the new agreement, 140 stores will remain open across the country, while 12 underperforming locations have been closed, affecting 100 jobs.

The retail brands, which include George Richards, Kingsport and Mr. Big and Tall, will continue operations as normal in the new arrangement, a statement said.

Details of the purchase were not disclosed, but new operators say the debt structure of the company significantly reduced allowing it to focus on key initiatives for growth.

In January, cash-crunched Grafton-Fraser received temporary court protection so it could work to liquidate inventory and sell its assets.

A report filed with Ontario Superior Court said that GraftonFraser owed GSO Capital Partners about $39.4 million.

It also owed $12.8 million to CIBC, which has a priority claim under an agreement between the two creditors.

-- with files from the Canadian Press