Globo Chaussures: a $1 million proposal, and shares for the FTQ fund

Asked on its statement of affairs to give the reasons for its financial difficulty, 9533-6293 Québec inc. ticked the box marked "Other" and wrote one line: "Financial results below those projected at the time of the acquisition," per the Notice of Proposal to Creditors, Oct. 15, 2026, encl. Statement of Affairs (Form 78), p. 13. The company, incorporated in January 2025, runs about twenty family shoe stores under the Globo name, in Québec with one in New Brunswick and one in Ontario, along with an online store, and employs about 213 people, according to the report its trustee, Restructuration Deloitte inc., prepared for creditors on October 14 (Trustee's Report on the Proposal, Oct. 14, 2026, paras. 5, 9–10). The trustee's first report, in May, had counted about 250 employees (First Report of the Trustee, May 6, 2026, para. 10). The October report repeats the first-year figures the trustee gave in May, revenue of $25.7 million against a $38.0 million budget in the twelve months to March 31, 2026 and a net loss of $3.0 million, and adds the company's account of them: "According to the Debtor, this significant negative variance between actual and budgeted revenue is the primary cause of its financial difficulties" (Trustee's Report on the Proposal, Oct. 14, 2026, paras. 15–17).

When the trustee reported to the court on September 21, the company's time to file a proposal was to run out on September 24, and it was asking for a "fourth and last" extension [translation], to October 9 inclusive, per the Fourth Report of the Trustee, Sept. 21, 2026, paras. 22–23; that request, and the sales shortfall the report recorded, were reported here on September 22. The court extended the time on September 24, the October report records, and on October 9 the company filed its proposal with the Office of the Superintendent of Bankruptcy (Trustee's Report on the Proposal, Oct. 14, 2026, paras. 12–13). It offers its ordinary unsecured creditors $1,000,000, to be distributed in three dividends in 2027, and would settle the ordinary claims of Fonds régionaux de solidarité FTQ, s.e.c. with common shares instead, per the Proposal (English translation), Oct. 9, 2026, ss. 5.1–5.4. Deloitte recommends that creditors vote for it at their meeting on October 30 (Trustee's Report on the Proposal, Oct. 14, 2026, paras. 14, 32).

Three dividends in 2027

The English versions of the proposal and of the trustee's report are uncertified convenience translations, and each says that the French version governs, per the Proposal (English translation), Oct. 9, 2026, p. 1 and the Trustee's Report on the Proposal, Oct. 14, 2026, p. 1. The proposal, signed for the company by its president, divides the secured creditors into three classes. Caisse Desjardins de l'Ouest de Laval and The Aldo Group Inc. are each a class of their own, and their secured claims would be paid "in accordance with the existing agreements or such arrangements as may be entered into between that creditor and the Debtor." The company values at $0, under s. 50.1(2) of the Bankruptcy and Insolvency Act, the security of any other secured creditor, whose claim would then be treated as an ordinary one, per the Proposal, Oct. 9, 2026, ss. 2.1–2.3 and p. 5.

Subject to the payments the proposal ranks ahead of them, the $1,000,000 would settle every ordinary claim except the FTQ fund's. The company would pay it to Deloitte in three instalments, $333,000 on January 15, 2027, $333,000 on July 15 and $334,000 on December 15, and may prepay at any time; Deloitte would distribute on January 31, July 31 and December 31, 2027. Each creditor's dividend would come in two tranches: first the lesser of $1,000 and its proven claim, then a pro rata share based on the proven claims left unpaid after the first, per the Proposal, Oct. 9, 2026, ss. 5.1–5.3. The lump sum is "payable by the Debtor from funds generated by its ongoing operations," the trustee's report says (Trustee's Report on the Proposal, Oct. 14, 2026, para. 18).

Three kinds of claim, if there are any, would be paid in full out of that same sum and ahead of every ordinary creditor: preferred claims under the paragraphs of s. 136(1) of the BIA that the proposal lists, other than the employees' paragraph (d), as if the company had become bankrupt on the day it filed its notice of intention, no later than thirty days after court approval; Crown claims for source deductions under s. 60(1.1), no later than six months after approval; and claims for a prescribed pension plan, on approval. Two payments sit outside the $1,000,000. On court approval, current and former employees would receive what they would have been entitled to under s. 136(1)(d) had the company become bankrupt on the date of its notice of intention, together with the wages, salaries, commissions or compensation for services rendered between that date and approval. Deloitte's fees and disbursements would be paid in addition to the lump sum, on presentation of its accounts, "in priority to any other payment provided for under this Proposal," per the Proposal, Oct. 9, 2026, ss. 3, 4.1–4.4. The company's statement of affairs puts its preferred creditors at nil (Notice of Proposal to Creditors, Oct. 15, 2026, encl. Statement of Affairs (Form 78), p. 13).