Donnelly Group Initiates Financial Restructuring Under the CCAA to Revise Borrowing Needed to Overcome COVID-19 Pandemic Challenges

The hospitality management company plans to survive the financially crippling effects of the pandemic and return stronger than before

VANCOUVER, BC, May 23, 2023 /CNW/ - Donnelly Group, a leading hospitality management company, is taking a proactive step towards securing a stronger and more resilient future amidst the unprecedented challenges posed by the COVID-19 pandemic. Today, the company announced its decision to initiate proceedings under the Companies' Creditors Arrangement Act (CCAA) for which an initial order has been granted by the Supreme Court of British Columbia.

The devastating impact of the global pandemic on the hospitality industry followed by its challenging economic effects, has necessitated this strategic move by Donnelly Group. Recognizing the need to navigate these difficult times and safeguard the well-being of its employees, the company aims to continue working cooperatively with its lender to revise the terms of existing loans, restructure the debt that was required to survive the pandemic, and to emerge as a more robust organization.

During the restructuring proceedings, Donnelly Group will collaborate closely with its lenders and professional advisors, including the court-appointed CCAA monitor, to complete its restructuring plan, streamline operations, and communicate openly with all stakeholders. It is optimistic it can complete this process in the next couple of months. During this period, it expects to continue operating all of its locations without interruption, maintain relationships with suppliers and service providers, and engage its employees at current levels during the CCAA proceeding and afterwards.

"Despite the often startling perception of this filing, it's very much a constructive versus destructive financial tool that will first bring added stability and then growth to our businesses operating in the embattled hospitality industry" says Donnelly Group founder and CEO Jef Donnelly. "This will be a survivor's tale, one that we're saddened to recognize cannot be told for many of our hospitality peers due to the tragic effects of the pandemic."

Donnelly Group emphasizes that the decision to embark on this restructuring journey is not a reflection of individual or team performance. Rather, it is a strategic response to the industry-wide impact of the COVID-19 pandemic. By undertaking the CCAA process, Donnelly Group aims to build a stronger foundation, positioned for long-term success and growth in a post-pandemic landscape.

The company expresses its deep appreciation for the unwavering commitment, flexibility, and hard work demonstrated by its dedicated staff throughout these challenging times. The resilience and determination exhibited by Donnelly Group's employees will be instrumental in overcoming the current hurdles and shaping a brighter future for the company.

About Donnelly Group

Donnelly Group is a hospitality management company born of publican DNA that operates a diverse portfolio of brands. Each unique, but with a shared culture driven by a collective affinity for meaningful, thought and conversation provoking topics influenced by design, music, art, sports, and travel.

Its core portfolio consists of Freehouse Collective, a group of iconic public houses, cocktail clubs and restaurants in Vancouver and Toronto, Barber & Co barber shops and products, and Bomber Brewing.

For more information, please visit freehouse.co

SOURCE Donnelly Group

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