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Cannabis retailer Fire & Flower Holdings Corp. says it has received a court order for creditor protection under the Companies' Creditors Arrangement Act.
The company had been pursuing additional financing to raise capital to fund its operations.
It says the board determined that it was is in the best interests of the company to file an application for creditor protection following a review of its strategic options and a consideration of all of its available alternatives.
Fire & Flower operates under several banners including the Fire & Flower, Friendly Stranger and Firebird Delivery brands.
The company says its board will remain in place and management will remain responsible for the day-to-day operations, under the oversight of a court-appointed monitor while it works to streamline operations and conduct a sales process for the business.
In order to fund the CCAA proceedings and other short-term working capital requirements, Fire & Flower says it has signed an agreement with an affiliate of Alimentation Couche-Tard Inc. for a $9.8-million debtor-in-possession loan.
This report by The Canadian Press was first published June 6, 2023.