Danier Leather enters insolvency as it seeks a buyer

TORONTO – Danier Leather Inc. said hello has entered insolvency proceedings to be able to protect itself from creditor lawsuits because it seeks a buyer.

The well-known retailer of leatherwear and accessories said the move was necessary due to ongoing financial problems, including a lot more than $27 million in financial losses during the last two years despite its best efforts to cut costs and turn the company around.

The company lost nearly $20 million in the 2015 fiscal year as sales fell 14 per cent after contracting by 10 % the previous year.

Danier said it expects to lose much more profit 2016 as operating losses have continued.

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CEO Jeffrey Wortsman said in Danier’s most recent annual report that the company had failed to offer clothing and accessories that aligned with current fashion trends.

Danier has signed an agreement with GA Retail Canada to consider over its stores then sell off its inventory and retail furniture if it doesn’t find another buyer.

The company said it’s not bankrupt which has enough cash to keep its stores open and pay its staff as it seeks to prevent liquidation.

After declaring insolvency, Danier becomes protected from further court proceedings against it from its creditors.