Vancouver-based Sterling Shoes Inc. (TSX:SSI) announced this morning it has received notice that the Toronto Stock Exchange will de-list the company’s common shares and convertible debentures November 25 because of Sterling’s failure to meet listing requirements.
This follows the company’s Octobr 21 announcement that it will restructure under B.C. Supreme Court protection for an initial period expiring November 20, which can be extended as required and approved by the court.
“The company is facing liquidity and profitability issues caused by an aggressive expansion undertaken in 2005-08 which collided with the financial crisis and resulting weak economic and retail environment,” the company explained in its petition for creditor protection.
The company was $57 million in debt, as of September 20, according to the petition.
The petition also noted recent steps the company has taken to respond to its financial difficulties, including:
- hiring Dave Alves, a new president and CEO, who joined Sterling on November 10, 2010;
- embarking on a strategic review and beginning a comprehensive re-organization of the company’s operating structure and business processes; and
- accelerating the liquidation of aged inventory and reducing its investment in new inventory to decrease warehousing and logistic costs.
Alvarez and Marsal Canada Inc. has been appointed monitor.
Jenny Wagler
@JennyWagler_BIV