Wine and Paint, a Canadian wine retailer and paint company, has filed for Chapter 11 protection after it lost $4.8 million last year.
The company had hoped to secure the Chapter 11 loan in March 2018, but that has been delayed because of a series of setbacks, including a court order that requires the company to report its quarterly financials to investors, said Michael Schofield, Wine and Pencil’s president.
The business is still profitable, he said.
“We’re not looking to do this lightly.
We’re just going to go to court to defend our rights to the art.”
The company is also struggling to raise capital, with more than a dozen financing rounds in the pipeline, said Schofild.
The filing comes less than a month after the company filed for bankruptcy protection in New Brunswick, following a $8.8-million loan from the federal government.
The bankruptcy was granted in September 2018, the same month it reported earnings of $0.02 per share.
The Canadian division of Wine and Penscil has been in business since 1878.
The brand started out as a wine and paints retailer, but has grown to include more than 100 stores across Canada and a network of more than 500 dealers.
Schofold said he hopes to expand beyond Canada and has started a small store in Toronto.
“Right now we’re looking to expand across Canada,” he said in an interview.
“It would be great to open up more stores in other parts of the world.”