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Ontario Goodwill files for bankruptcy, but hints at plan for possible return

CityNews | posted Tuesday, Feb 9th, 2016

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Goodwill Industries of Toronto, Eastern, Central and Northern Ontario has filed for bankruptcy, according to a statement posted to the corporation’s website Monday afternoon.

According to the statement, the corporation is also contemplating making a proposal to its creditors which would annul the bankruptcy and allow the corporation to reopen some stores.

On Jan. 16, Goodwill suddenly shut 16 stores and 10 donation centres, putting 430 employees out of work. Goodwill’s CEO Keiko Nakamura said at the time that the stores were closed because of a “cash flow crisis.”

There is no indication of what the proposal to reopen stores might entail, but according to the release, the union representing Goodwill employees has endorsed the decision to file for bankruptcy.

“Strategic alternatives under consideration focus on overcoming significant barriers to relieve the organization’s financial burden to allow for a possible restructure,” the statement reads.

In accordance with the Bankruptcy and Insolvency Act, a trustee has been appointed to assist in the process and will be contacting all creditors within five business days.

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