TORONTO, Dec. 2 - Toronto-based Irwin Toy Limited, ("Irwin"), a privately held manufacturer and distributor of toys, today initiated a court- supervised restructuring of its finances and business operations.
Irwin and a number of its affiliated companies in Canada and the U.S.
have obtained an Order of the Ontario Superior Court of Justice today under
the Companies' Creditors Arrangement Act ("CCAA"). Protection from creditors has been sought in the United States.
Mr. Jean-René Halde, President and CEO of Irwin, said, "We are taking this course of action to allow the company to address its challenges and protect the interests of our employees and creditors.
"Irwin has a number of popular product lines and great employees. There have already been serious expressions of interest by parties interested in purchasing segments of Irwin's business. If consummated, these sales could form the basis of a company restructuring or a sale of advantage to creditors and will hopefully result in saving as many jobs as possible.
"Subject to the measures we are announcing today, we will work with our suppliers and will continue to service our customers during this period.
"Unfortunately, the changes being announced today have resulted in many of our employees leaving the company. While this was a necessary business decision, I deeply regret its effect on employees, especially at this time of year," Mr. Halde said.
"We will do everything we can to quickly implement a restructuring strategy and maximize recovery to our creditors. The outcome of the process we have initiated today will be determined through the negotiations to be held in the days and weeks ahead," Mr. Halde said.
