Tip Top Tailors owner gets court protection to deal with cash crunch

Tip Top Tailors owner gets court protection to deal with cash crunch TORONTO – There’s a cash crunch at Grafton-Fraser Inc., owner of Tip Top Tailors and other menswear chains, which has received temporary court protection so it can work to liquidate inventory and sell its assets.A report filed with Ontario Superior Court says that Grafton-Fraser owes GSO Capital Partners about $39.4 million. It also owes $12.8 million to CIBC, which has a priority claim under an agreement between the two creditors.The report says the Toronto-based retailer wouldn’t have enough funds to pay rent due on Feb. 1, or amounts owed to its suppliers, employees and tax authorities by March 11, without millions of dollars from GSO if creditor protection was granted.Justice Glenn Hainey signed an order on Wednesday granting the temporary protection under the Companies’ Creditors Arrangement Act.The case is expected to be back in court on Monday to advance plans for liquidation sales and a sale of the company as a whole to an affiliate of GSO, if a superior bid isn’t found.Grafton-Fraser has 158 stores across Canada, including 107 under the Tip Top Tailors banner. The other 51 stores sell clothing for “big and tall” men under various banners including George Richards, Kingsport and Mr. Big and Tall. by The Canadian Press Posted Jan 26, 2017 11:45 am MDT Last Updated Jan 26, 2017 at 1:00 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email read more