BUSINESS

Goodwill In Ontario Files For Bankruptcy, Plans Restructuring

02/09/2016 08:45 EST | Updated 02/09/2016 08:59 EST
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TORONTO -- Goodwill Industries of Toronto, Eastern, Central and Northern Ontario says it's seeking bankruptcy protection as it tries to restructure.

CEO Keiko Nakamura said Monday in a statement the Goodwill has filed an assignment under Canada's Bankruptcy and Insolvency Act.

The statement says the purpose of the filing is to preserve Goodwill's assets for its principal creditors, who are collectively the former employees of the corporation.

Nakamura says Goodwill is contemplating making a proposal to its creditors which, if approved, would annul the bankruptcy and allow the corporation to reopen some stores.

She says the Canadian Airport Workers Union, which represent the majority of the workers at Goodwill TECNO, has confirmed its support for the corporation's plan.

Last month, the charitable organization announced it would close 16 stores, 10 donation centres and two offices due to cash flow problems, affecting more than 430 workers.