TORONTO, Nov. 9, 2020 /CNW/ - Canada's premier, multi-brand hospitality group King Street Company Inc. ("The King Street Food Company" or the "Company") announced today that the Company and certain of its affiliates and subsidiaries (collectively, the "KSF Group") have obtained relief under the Companies' Creditors Arrangement Act ("CCAA"), in order to restructure its businesses and financial affairs, as a direct result of the COVID-19 crisis. An initial order under the CCAA was granted on Friday, November 6 by the Ontario Superior Court of Justice, and MNP Ltd. (the "Monitor") has been appointed as monitor of the Company's CCAA proceedings.
On the heels of celebrating the tenth anniversary of their first Buca restaurant in Toronto's King West Community, the start of 2020 marked an exciting time of growth for The King Street Food Company with plans to add new concepts across Toronto and the GTA to their thriving collection of venues which include: Jacobs & Co. Steakhouse; Buca; Bar Buca; La Banane and CXBO.
That growth came to a devastating halt due to the COVID-19 Pandemic bringing unexpected and staggering financial difficulties for much of the hospitality industry, including The King Street Food Company. Since provincially-ordered restrictions on dining in the GTA were first implemented in March 2020, all of the Company's operating restaurants have been temporarily closed for dine-in service with a limited number of locations offering a scaled-back takeout and delivery service. Prior to the second provincially-ordered indoor dining restrictions in October 2020, the Company was actively preparing for a gradual reopening of select venues.
Due to the present financial challenges and to support the Company's restructuring and recapitalization, the board of directors of the Company determined that it was in the Company's best interests to obtain relief under the CCAA. The Company's proceedings under the CCAA will provide the needed "breathing room" to continue to build on operations and, to the extent permitted by applicable government orders, further the development of plans for re-openings as well as new openings.
"Alongside the entire hospitality sector, the Covid-19 Pandemic has put us in an extremely difficult situation that was beyond our control" said Peter Tsebelis, Managing Director & Partner of King Street Company Inc. "We are grateful to our loyal clientele, our tireless staff, our supportive financing partners, and all of our stakeholders that have helped us through these very challenging circumstances. This was an emotional decision for us but we are confident that the CCAA process will give us time to stabilize our business and ultimately put us in a stronger position to build on our successful brands as we emerge from the COVID crisis".
Based on last week's announcement by the Ontario Government that indoor dining restrictions may end on November 14, 2020 in Toronto, the King Street Food Company is in the process of developing a plan to reopen certain restaurants including Jacobs & Co. Steakhouse, La Banane and select Buca restaurants for indoor/outdoor dining in the near future, as well as expanding takeout/delivery offerings.
Information relating to the Company's CCAA proceedings is available on the Monitor's website: mnpdebt.ca/en/corporate/corporate-engagements/king-street-restaurant-group.
Inquiries should be directed to the Monitor's representative, Sheldon Title (Kingstreetrestaurants@mnp.ca / 416-596-1711).
ABOUT THE KING STREET FOOD COMPANY
The King Street Food Company, Canada's premier, multi-brand hospitality group in the Toronto Area (GTA), is renowned for its culinary innovation, hospitality, and passion for creating memorable experiences. The Company, founded in 2006 by Peter Tsebelis and Gus Giazitzidis, was built on a dedicated philosophy of putting the "guest first." Their portfolio includes modern classic Jacobs & Co. Steakhouse (2007), the critically-acclaimed Buca Osteria & Enoteca (2009), neighbourhood bar and café Bar Buca (2014), coastal focused Buca Osteria & Bar in Toronto's Four Seasons development (2014), French-inspired La Banane (2017) and chocolate shop, CXBO Chocolates (2015). For more information, visit kingstreetfood.com.
SOURCE The King Street Food Company
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