Club Monaco Canada: after a PPSA foreclosure, $39,774 in the bank

The Club Monaco brand was founded in Toronto in 1985. The company that retailed its casual clothing for men, women and children was incorporated in Nova Scotia as an unlimited company on January 1, 2000, keeps its mailing address in Toronto, and was called Club Monaco Corp. until June 8, 2026, when the name was changed to 3038992 Nova Scotia Company, per the Trustee's Report to Creditors on Preliminary Administration, July 14, 2026, s. 3, paras. 1–2. Its parent, Club Monaco International, LLC, was sold to Ralph Lauren Corporation in 1999, when the public sources the trustee consulted put the number of Club Monaco stores at about 125 worldwide. Ralph Lauren sold it in 2021 to an entity affiliated with the private equity firm Regent, L.P.; the count was then about 72, in North America and Europe, and by late 2025 about 19 remained, all in North America, per the Trustee's Report to Creditors on Preliminary Administration, July 14, 2026, s. 3, paras. 3–6.

At 11:56 on June 25, 2026 the company made an assignment in bankruptcy under s. 49 of the Bankruptcy and Insolvency Act, in the Toronto division, estate No. 31-3390682, with AlixPartners Restructuring, Inc. as trustee, per the Certificate of Appointment, June 25, 2026. The trustee's Report to Creditors on Preliminary Administration, dated July 14, the day of the first meeting of creditors, finds $39,774.00 in the company's bank accounts and 91 known unsecured creditors owed approximately $54,881,324.27, and, on that cash and the realizable assets, the trustee does not expect any distribution to them, per the Trustee's Report to Creditors on Preliminary Administration, July 14, 2026, ss. 4.1, 5.3 and 8.

The loan and its enforcement

The trustee "understands that the Company and its affiliates have experienced financial hardship and operational challenges in recent years," and the company closed many retail stores, per the Trustee's Report to Creditors on Preliminary Administration, July 14, 2026, s. 3, para. 6. Club Monaco U.S., LLC, the American operating company, made a general assignment for the benefit of its creditors under California law on November 12, 2025; the parent did the same on February 10, 2026; and Club Monaco Europe Limited, a subsidiary of the Canadian company, entered a creditors' voluntary liquidation in May 2026, per the Trustee's Report to Creditors on Preliminary Administration, July 14, 2026, s. 3, paras. 3, 7.

The company's loan agreement with DBI Lux Holdings S.à r.l. is dated April 14, 2025, was amended on October 10, 2025, and is in the amount of US$3,673,750.95. The trustee describes it as "purportedly secured," including by an Ontario-law general security agreement, a share pledge, a California-law security agreement and a Québec movable hypothec, and says it has not independently reviewed that security. In a footnote it adds that it and its counsel have been unable to pull historic reports under the Personal Property Security Acts (PPSAs) as of January 18, 2026 to confirm whether DBI had registered security, per the Trustee's Report to Creditors on Preliminary Administration, July 14, 2026, s. 3.1, para. 1 and n. 1.

On January 16, 2026 DBI assigned the loan agreement and its security, under two assignment agreements, to 1568476 B.C. Unlimited Liability Company, which the report calls 156 ULC; from then the company owed 156 ULC not less than US$3,673,750.95. According to documents the trustee reviewed, by that day there had been "a material deterioration in the Company's business or financial condition," a default under s. 9.1(i) of the loan agreement, and 156 ULC declared the debt due and demanded payment in full; the report's own summary says the company had "purportedly defaulted," per the Trustee's Report to Creditors on Preliminary Administration, July 14, 2026, s. 3, para. 8, s. 3.1, para. 2 and s. 3.2, para. 1.

To enforce, 156 ULC opted to foreclose on the collateral outside Québec under the PPSAs of Alberta, British Columbia, Nova Scotia and Ontario, a remedy the report glosses as "a statutory process by which a secured party may accept collateral in satisfaction of the secured obligation." The demand letter of January 16 attached a notice of intention to enforce security under s. 244 of the BIA, and that same day, the report says, the company consented in writing to immediate enforcement and waived the 10-day notice period. On January 18, 156 ULC delivered a notice of foreclosure covering all collateral pledged in the non-Québec security, and the company acknowledged receipt the same day. The trustee is advised that 156 ULC gave notice of the enforcement only to the company. On January 19 the company signed a quitclaim agreement transferring to 156 ULC its interest in 997 shares of Club Monaco S.A.M., its Monaco subsidiary; the trustee has not determined whether those are all of that company's shares or only some. No objections were received within the 15-day statutory period, and effective February 3, 2026, title to the company's personal property outside Québec passed to 156 ULC, per the Trustee's Report to Creditors on Preliminary Administration, July 14, 2026, s. 3.3, paras. 1–5 and n. 2.

The company's assets in Québec were not affected by the foreclosure. On or around April 29, 2026, 156 ULC bought the company's inventory, merchandise, equipment, fixtures, finished goods, raw materials, work-in-process, packaging, supplies and accessories in the province for C$34,593.74 plus tax, a price the trustee has been advised was based on a third-party, arm's-length liquidation valuation prepared by Gordon Brothers Asset Advisors, LLC. "The combined effect of the foreclosure and the Québec purchase was that 156 ULC acquired all of the Company's personal property in Canada," per the Trustee's Report to Creditors on Preliminary Administration, July 14, 2026, s. 3.4, paras. 1–2.

Three British Columbia companies

On February 13, 2026, the trustee understands, 156 ULC transferred the intellectual property and the Monaco shares it had acquired from the company to 1576613 B.C. Unlimited Liability Company. The store leases, for ten retail locations in Alberta, British Columbia, Ontario and Québec, were not acquired in the enforcement; each has since been assigned to 1576615 B.C. Unlimited Liability Company, and the trustee understands that some settlement documents for those assignments may be outstanding, per the Trustee's Report to Creditors on Preliminary Administration, July 14, 2026, ss. 3.5–3.6.