Goodwill’s Toronto based operation has filed for bankruptcy as it looks to ”restructure” the company.
The announcement was made in a statement posted to the company’s website on Monday, in which CEO Keiko Nakamura said Goodwill Industries of Toronto, Eastern, Central and Northern Ontario (TECNO) filed an assignment under Canada’s Bankruptcy and Insolvency Act (the “BIA”), ” to preserve the assets of the corporation for the benefit of its principal creditors, who are collectively the former employees of the corporation.”
She added that ”the corporation is contemplating later making a proposal to its creditors which, if approved, would annul the bankruptcy and allow the corporation to reopen some stores, continuing to serve the surrounding communities and offering a source of gainful employment.”
According to the release the move has the support of the leadership of the Canadian Airport Workers Union (CAWU), which represent the majority of the workers at Goodwill TECNO.
The news comes following a tumultuous month for the charity, after 16 stores, 10 donation centres and two offices in the Province were closed suddenly on January 17th.
450 employees of the company were locked out of the affected stores in Toronto, Mississauga, Brampton, Newmarket, Barrie, Orillia and Brockville, with a ”cash flow crisis” blamed for the sudden closures.