Danier Leather Inc. (“Danier") was Canada’s largest retailer of leather apparel and accessories. At its peak, Danier operated from approximately 90 stores across Canada and employed over 1,300 individuals.
Danier’s shares were listed on the Toronto Stock Exchange. Danier incurred significant operating losses in 2014 and 2015 resulting from operational challenges, increased competition from US retailers, changing demographics and macroeconomic factors impacting Canadian retailers. Due to those issues, Danier filed for creditor protection and KSV was appointed as Proposal Trustee and subsequently as Court appointed Receiver and Licensed Insolvency Trustee.
KSV led Danier’s restructuring proceedings, including the sale process for Danier’s business and assets. KSV conducted a claims process involving over 1,300 creditors. Several of the claims were contentious, including hundreds of employee claims, which had varying attributes based on each employee’s circumstances and provincial employment law. KSV worked with employee representative counsel to negotiate a global resolution of the amount of the employee claims. The proceedings were successful. All creditors were paid in full and over $15 million was distributed to Danier’s shareholders.