TORONTO — King Street Company Inc. (The King Street Food Company), the multi-brand hospitality group based in Toronto, along with certain affiliates and subsidiaries of the company, has obtained relief under the Companies’ Creditors Arrangement Act (CCAA). This action was taken in order to re-structure its businesses and financial affairs, as a direct result of the COVID-19 crisis.
An initial order under the CCAA was granted on Friday, November 6 by the Ontario Superior Court of Justice, and MNP Ltd. has been appointed as monitor of the company’s CCAA proceedings.
At the start of 2020, The King Street Food Company was in the midst of adding new concepts across Toronto and the Greater Toronto Area. But, that growth came to a devastating halt due to the pandemic’s impact on the hospitality industry.
The King Street Food Company’s dining-rooms have remained closed at all of its operating restaurants since March, when provincially ordered restrictions were first implemented, with a limited number of locations offering a scaled-back takeout and delivery service. Prior to the second provincially ordered indoor-dining restrictions in October 2020, the company was actively preparing for a gradual re-opening of select venues.
Due to the present financial challenges, and to support the company’s re-structuring and re-capitalization, its board of directors determined it was in the company’s best interests to obtain relief under the CCAA. The company’s proceedings under the CCAA will provide the needed “breathing room” to continue to build on operations and, to the extent permitted by applicable government orders, further the development of plans for re-openings, as well as new openings.
“Alongside the entire hospitality sector, the COVID-19 pandemic has put us in an extremely difficult situation that was beyond our control,” says Peter Tsebelis, managing director and partner of King Street Company Inc. “We’re grateful to our loyal clientele, our tireless staff, our supportive financing partners and all of our stakeholders that have helped us through these very challenging circumstances. This was an emotional decision for us, but we’re confident the CCAA process will give us time to stabilize our business and ultimately put us in a stronger position to build on our successful brands as we emerge from the COVID-19 crisis.”