In the last week three more well-known retailers have been forced to seek creditor protection amid the pandemic-related shrinkage in consumer spending. Geox Canada, a shoe and clothing retailer with 30 stores, has seen its sales for the first half of 2020 drop to half that of 2019. Its restructuring under the Bankruptcy and Insolvency Act will focus on store closings and stronger e-commerce.
Retail businesses continue to suffer
Extension of the Redemption Period in Foreclosure Actions and Dueling Valuations
After the expiration of the “usual” six month redemption period in a foreclosure action in British Columbia, the mortgagee will generally apply for an order for conduct of sale with respect to the subject property. However, where the mortgagor believes that the subject property has ample value to satisfy the mortgagee’s claim, the mortgagee may apply for an extension of the redemption period.
Court Appointment of Receiver not Automatic
The security granted to lenders and other creditors almost always provides for the appointment of a receiver: an agent of the creditor with the power to take over the property and business charged by the security, often with the purpose of arranging a sale.
