MISSISSAUGA, ON — TravelBrands says it has reached agreement with Sears Travel and will continue to operate the brand while it is in creditor protection.
In an affadavit filed earlier by TravelBrands, co-CEO Joe DeMarinis had said that as part of the discussions with Sears, TravelBrands agreed to defer issuing a disclaimer notice to Sears in return for Sears agreeing to waive daily amounts accruing due under the agreement.
DeMarinis said at the time that the parties would “continue discussing innovative solutions in an effort to reach a possible resolution whereby the parties can continue their business arrangement”.
In a list of creditors filed by TravelBrands, Sears Canada is listed as being owed $5.99 million.
The lease on 75 Eglinton Ave. East and the agreement with Sears were mentioned as major reasons why TravelBrands had gone into creditor protection.
Related:
- Dwindling margins, $3.6m a year rent on vacant building, Sears deal blamed for TravelBrands move
- Developments in TravelBrands CCAA proceedings: suppliers, agents, Manulife, TICO, IATA, BMO
- Court agrees to extend TravelBrands protection from creditors until Aug. 17
- TravelBrands Inc. disclaims lease on Eglinton Avenue building
