Donnelly Group paves path forward as creditors agree to debt restructuring
The Vancouver-based owner of more than a dozen bars and restaurants announced today that it’s found a solution with its lenders to continue in business despite a huge amount of post-pandemic debt.
The Donnelly Group announced Tuesday that its creditors have unanimously approved its debt restructuring plan — allowing it to move forward and slowly repay what it owes.
Back in May, Daily Hive broke the story that the group had initiated Companies’ Creditors Arrangement Act proceedings in the BC Supreme Court because it owed more than $20 million on its lines of credit, unpaid rent, taxes, and business expenses.
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The Donnelly Group believes the support from its lenders is a testament to its determination to survive the “financially crippling effects” of the pandemic, it said in a news release.
“We’re elated to receive the needed votes at the CCAA creditors meeting and are now on track to do exactly what we set out to do in financially restructuring with the aim of ensuring a sustained future and rooted legacy” founder Jeff Donnelly said.
He also thanked the company’s employees, its customers, and its suppliers for their support through the difficult time.
The company credits much of the financial trouble to the lingering effects of the pandemic as well as minimum wage increases and interest rate hikes.
The Donnelly Group is now also branded as Freehouse Collective and owns Bomber Brewing, Granville Room, Academic Public House, The Three Brits Pub, Clough Club, Cinema Public House, Sing Sing Beer Bar, The Butcher and Bullock, Stock Room, Isabelle’s, Lamplighter, Hello Goodbye, and more.