Tokyo Smoke has begun the process of selling off assets as part of its filing under the Companies’ Creditors Arrangement Act. The firm yesterday afternoon indicated that the stalking horse sales process has officially begun.
Under the sales process, the company has secured a stalking horse bid valued at $77 million through TS Investments Corp, a figure which doesn’t include the assumption of certain liabilities that the company hold. The bid is to be viewed as a floor price for the sale of the assets of Tokyo Smoke.
Under the terms of the stalking horse bid process, the company has until October 21 to source additional bids for the assets to potentially garner a higher price for its sale under a letter of intent. If multiple bidders appear, a second phase will solicit binding agreements from the interested parties, with the entire process expected to close by November 11.
The sales process follows Tokyo Smoke in late August announcing that it would be closing 29 retail locations and obtaining creditor protection under a CCAA filing. The filing was sought as a means of restructuring its business to align operations with the current market conditions.
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