MONTREAL — Nygård has submitted a bid for Cotton Ginny, a Toronto-based retailer of plus-size casual clothes that is under court protection from creditors. The bid also includes Cotton Ginny’s profitable Tabi division, which is not for sale.
This story first appeared in the February 5, 2003 issue of WWD. Subscribe Today.
Nygård, Canada’s largest manufacturer and retailer of women’s apparel, said its bid is a “lucrative” one, but would not provide details. The bid would ensure that suppliers, who are owed about $10 million, will receive most of their money, Nygård added.
More than half of Cotton Ginny’s 300 stores have been put up for sale by the court-appointed monitor, Richter & Partners Inc., and it is liquidating the remaining outlets.
Northern Group Retail Ltd. of Toronto, owner of 285 stores under the Northern Reflections and other banners, has also shown interest and has submitted a letter of interest to purchase an unspecified number of Cotton Ginny outlets. The company is owned by the Canadian affiliate of York Management Services Inc. in Somerset, N.J.
Meanwhile, another struggling Canadian firm, Montreal-based Les Boutiques San Francisco, said it will stop funding its West Coast unit and try to sell it as part of a restructuring, following weak Christmas sales at its downtown store Les Ailes de la Mode.