TORONTO – Tokyo Smoke, an award-winning cannabis retailer, announced today that it has commenced a restructuring of its business and has obtained an Initial Order under the Companies’ Creditors Arrangement Act (the “CCAA”) from the Ontario Superior Court of Justice.
The Company has secured financing to continue operating in the normal course while it restructures its business, which includes adjusting its total retail footprint through the closing of 29 locations, with continued operation of approximately 167 locations across Ontario, Manitoba, Saskatchewan and Newfoundland and Labrador. This encompasses the Company’s various retail programs and its medical cannabis business. Retail locations unaffected by the restructuring will continue to operate in the normal course with no disruption or change to the Company’s online business or to The High Roller Club loyalty program.
Following a thorough review of all available options and alternatives, Tokyo Smoke commenced the restructuring to align its operations with current market and regulatory conditions, which have significantly changed since the initial licensing regimes in the provinces where Tokyo Smoke operates were introduced. The Company will pursue an exit from CCAA protection as a stronger business, better positioned to continue providing premium products to its customers over the long-term, while continuing to provide jobs to its more than 500 dedicated employees across Canada.
Reconstruct LLP is acting as legal advisors to Tokyo Smoke and Alvarez & Marsal Canada Inc. is acting as the CCAA Monitor. Additional information regarding the CCAA proceedings will be made available on the Monitor’s website.
About Tokyo Smoke
Tokyo Smoke is an award-winning cannabis retailer committed to bringing Canadians the highest quality, regulated products online and across 61 convenient retail locations. Tokyo Smoke educates and empowers customers to make well-informed decisions about safe, high-quality cannabis products—curating unique offerings and product assortments that reflect Canadians’ interests, neighbourhood by neighbourhood. The group operates approximately 167 locations in total across Ontario, Manitoba, Saskatchewan and Newfoundland and Labrador through its various retail programs.
