Tip Top Tailors owner strikes deal to stay open after CCAA refinancing

The company that owns Tip Top Tailors, George Richards, Kingsport and Mr. Big and Tall will remain open with 140 stores after a refinancing plan that will see the company sold toU.S.-based GSO Capital Partners.

The company filed for protection from its creditors in January, when court filings suggested the parent company, Grafton Fraser Inc., owed $60 million to its creditors across 158 locations in Canada.

GSO was owed almost $40 million of that total, but the deal announced late Wednesday will see the U.S. chain take over the entire company.

A dozen locationswill be closed, which will result in a loss of about 100 employees. But more than 140 stores will now stay open.

"Our strong retail brands are now in an excellent position to focus on the future and the long-term success of our menswear business, which is our area of expertise," Grafton FraserCEO Lance Itkoff said. "Store sales are stable, with June being particularly good, and our ecommerce business is growing steadily."

More to come