#Order
Proposal approved, providing an aggregate $750,000 dividend, employee claims paid in full immediately and Crown claims within six months, with ordinary creditors expected to receive approximately 27.1%.
Source: Order Approving Proposal
Steve’s Music Store Inc.
ActiveFollow
- Proceeding
- NOIarticle 50.4(9) de la Loi sur la faillite et l'insolvabilité
- Court
- Superior Court of Québec · Commercial Division
- File
- 500-11-066759-263
- Industry
- Retail · Specialty retail
Filings held26
Last activity10 Sep 2026
On the record274 days
OverviewSummary updated
Steve's Music Store Inc. (Magasin de Musique Steve Inc.), a family-owned music retailer operating five stores in Montréal, Greenfield Park, Dollard-des-Ormeaux, Toronto and Ottawa, filed a Notice of Intention to Make a Proposal on February 4, 2026 in the Superior Court of Québec (Commercial Division) in Montréal, citing shifting consumer behaviour, online competition and rising costs. Following a February 10, 2026 court order, the Company ran liquidation sales with Continental across its locations, with store closing sales at Greenfield Park, Dollard-des-Ormeaux, Ottawa and Toronto; four stores have since closed. By the Trustee's July 8, 2026 report, a lease termination notice had been issued for the last remaining store and a liquidator engaged to auction remaining inventory, while the Company worked with the Trustee and counsel on a proposal. The Court issued a further order on July 9, 2026. The proceeding remains active.
Claims processIf you are owed money
A claims procedure has been established — see the order for deadlines.
Proceedings AIOpen Proceedings AI
Case updates26 dated entries
#Report
Report of the Trustee on the Financial Situation of the Debtor and on the Proposal — Court officer report
#Order
Order issued by the Superior Court, Commercial Division, District of Montréal; the stated statutory basis in this proceeding is article 50.4(9) of the Bankruptcy and Insolvency Act.
Source: Stay Extension Order to August 4th, 2026 (in French)
#Report
Reported that the Company had issued a lease termination notice for its final retail location and engaged a liquidator to auction remaining inventory while developing a proposal.
Source: Fifth Report of the Trustee
#Report
Recorded the closure of four retail locations and the normalization of operations around the single remaining store, with proposal work continuing alongside the Trustee and legal counsel.
Source: Fourth Report of the Trustee
#Filing
Stay Extension Order extending Stay of proceedings to May 31, 2026 (in French) — Application / notice of application
#Report
Reported that, since the February 10, 2026 order, liquidation sales had been conducted at all retail locations, with store closing sales under way at Greenfield Park, Dollard-des-Ormeaux, Ottawa and Toronto.
Source: Third Report of the Trustee
#Filing
Motion to Extend the Delay to Make a Proposal to June 3, 2026 — Application / notice of application
#Filing
Further application filed by the Company at Montréal in the Superior Court, Commercial Division, under court file 500-11-066759-263.
Source: Motion to Extend the Delay to Make a Proposal until April 20, 2026
#Order
Interim order made in the Commercial Division at Montréal; from this date the Company, with Continental's assistance, began liquidation sales at its retail locations.
Source: Order Authorizing and Approving a Liquidation Services Agreement and Certain Restructuring Charges
#Report
First Report of the Trustee described the five-store operation, the causes of the Company's difficulties, and its plan to liquidate using Continental with related-party interim financing plus KERP, Administration, Interim Financing and Continental charges.
Source: First Report of the Trustee
#Filing
Motion for the Authorization and Approval of a Liquidation Services Agreement and Certain Restructuring Charges and Related Relief — Application / notice of application
#Filing
Amended Certificate of Filing of a Notice of Intention to Make a Proposal — NOI certificate of filing
AnalysisAll insights
Guide
Division 1 proposal: how it works for a business in Canada
When a Canadian business can't pay its debts, a Division 1 proposal lets it keep operating while it offers creditors a deal. How the notice of intention, the six-month clock, the vote and court approval work, what CRA must be paid, and what happens when it fails, drawn from the court record.
Case update
Steve's Music Store: the related party stood down
Five months after filing a notice of intention, the company has closed every store, auctioned the last of its inventory and disclaimed its final lease. What is left is cash, a receivable from the auctioneer and some life insurance policies — and a proposal offering creditors $750,000, made possible because the family group agreed to give up an estimated $1.4 million of its own claims.
Case update
Steve's Music: five stores down to one, and a proposal still to write
A family music store that has sold instruments since 1965 filed a notice of intention in February with five locations and more than eighty staff. Four stores are closed. What is left is one Montreal shop and a web store — now spending money to restock the shelves the liquidation sale emptied, which is why the forecast is negative and the extension matters.
Parties
Debtor
Steve’s Music Store Inc.
Proposal trustee
EY
Capital structureAs asserted in the filings
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | 4470133 Canada Inc. ("Interim Lender")Proposed charge over the Debtor's movable and personal property (the "Interim Lender Charge") in the amount of $350,000, securing the Interim Financing Facility (maximum facility amount $250,000, interest 10% per annum, no fees) — Related party: Interim Lender is indirectly related to the Debtor. $350,000 is the proposed charge/security amount (based on liquidity estimate plus contingency), not an outstanding balance; $250,000 is the facility limit, not a balance. Charge ranks junior to TD/Hoshino, KERP Charge and Administration Charge. — debtor: Steve's Music Store Inc. | — | Motion for the Authorization and Approval of a Liquidation Services Agreement and Certain Restructuring Charges and Related Relief |
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured |
64 more claims in 2 classes The stack holds Secured and Unsecured claims.
Every creditor and every amount, drawn to scale.
Start 5-day trial
Card required. Nothing charged for 5 days. Cancel anytime.
Already a subscriber? Sign in.
See all plans“not stated” means the record names the claim without a figure; “—” means not in the extracted record.
Sale processAs stated in the filings
Liquidation in progress — Following the auction of its inventory and the closure of its final retail location, all of the Debtor's operations ceased; a liquidation sale and auction were conductedReport of Trustee on Proposal · 31 Aug 2026
AdvisorsCICI Détail Inc./CICI Retail Inc. (liquidator)Report of the Trustee on the Financial Situation of the Debtor and on…
RecoveriesAs stated in the filings
Unsecured creditors: a distribution.Under the plan · sanctionedReport of the Trustee on the Financial Situation of the Debtor and on… · 4 Aug 2026
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| Deemed trust | — | — | paid in full | Under the plansanctionedper the debtor | Proposal · 3 Aug 2026 |
| Preferred | — | — | paid in full | Under the plansanctionedper the debtor | Proposal · 3 Aug 2026 |
| Unsecured | — | — | vs. in a bankruptcy | Under the plansanctionedper the proposal trustee | Report of the Trustee on the Financial Situation of the Debtor and on… · 4 Aug 2026 |
Each row is one filing's statement, copied as it reads and never computed. "Estimated" is the officer's forecast; "Under the plan" is the plan's or proposal's own term; "Final" is a declared or paid distribution; a row with no chip states no footing. A range is the two numbers stated; "of proven claims" is the document's own denominator.
2 blurred figures above
The claims and what each class or creditor recovers — each as the filing states it, with its source.
Start 5-day trial
Card required. Nothing charged for 5 days. Cancel anytime.
Already a subscriber? Sign in.
See all plansEstate financialsReported figures — never derived
Total assets at filing
As at ·
Cumulative receipts
$470K
As at 8 Jul 2026Fifth Report of the Trustee
Cash on hand
As at
Professional fees
As at
2 more reported figures, and the total the debtor stated at filing
Each one as the filing states it, with its source.
Start 5-day trial
Card required. Nothing charged for 5 days. Cancel anytime.
Already a subscriber? Sign in.
See all plansDocuments
26 filings
| Date | Document | File |
|---|---|---|
Order Approving Proposal
| PDF · Subscribers | |
Report of Trustee on Proposal
| PDF · Subscribers | |
| Form 31 - Proof of Claim | PDF · Subscribers | |
| How to Complete a Proof of Claim Form and a Proxy Form | PDF · Subscribers | |
Notice of Proposal to Creditors
| PDF · Subscribers | |
Proxy
| PDF · Subscribers | |
Voting Letter
| PDF · Subscribers | |
Report of the Trustee on the Financial Situation of the Debtor and on the Proposal
| PDF · Subscribers | |
Proposal
| PDF · Subscribers | |
Stay Extension Order to August 4th, 2026 (in French)
| PDF · Subscribers | |
Fifth Report of the Trustee
| PDF · Subscribers | |
| Steve’s Music Store Inc. – Stay Extension Order, extending Stay of proceedings to July 11th, 2026 (in French) | PDF · Subscribers | |
Fourth Report of the Trustee
| PDF · Subscribers | |
| Motion to Extend the Delay to Make a Proposal | PDF · Subscribers | |
| Stay Extension Order extending Stay of proceedings to May 31, 2026 (in French) | PDF · Subscribers | |
Third Report of the Trustee
| PDF · Subscribers | |
| Motion to Extend the Delay to Make a Proposal to June 3, 2026 | PDF · Subscribers | |
| Stay Extension Order extending Stay of proceedings to April 19, 2026 (in French) | PDF · Subscribers | |
Second Report of the Trustee
| PDF · Subscribers | |
Motion to Extend the Delay to Make a Proposal until April 20, 2026
| PDF · Subscribers | |
Order Authorizing and Approving a Liquidation Services Agreement and Certain Restructuring Charges
| PDF · Subscribers | |
First Report of the Trustee
| PDF · Subscribers | |
Notice to Creditors
| PDF · Subscribers | |
Motion for the Authorization and Approval of a Liquidation Services Agreement and Certain Restructuring Charges and Related Relief
| PDF · Subscribers | |
| Amended Certificate of Filing of a Notice of Intention to Make a Proposal | PDF · Subscribers | |
| Certificate of Filing a Notice of Intention | PDF · Subscribers | |
Filing titles and dates are public, and so is each filing's own page. The figures read from them are for subscribers.
CiteProceedings., “Steve’s Music Store Inc.” (NOI), Superior Court of Québec · Commercial Division. Retrieved 4 November 2026, https://proceedings.ca/case/steve-s-music-store-inc