Core Viewpoint - Colabor Group Inc. has entered into protection under the Companies' Creditors Arrangement Act (CCAA) to facilitate its restructuring efforts and manage its financial obligations [1][2]. Group 1: CCAA Proceedings - The Superior Court of Quebec has issued an Initial Order granting Colabor and its subsidiaries protection under the CCAA, which includes a stay of proceedings against the Company and its subsidiaries [1][2]. - Raymond Chabot Inc. has been appointed as the Monitor to assist Colabor with its restructuring and report to the Court [2]. - The Initial Order allows for debtor-in-possession financing (DIP Financing) from The Toronto-Dominion Bank, The Bank of Montreal, and the Bank of Nova Scotia to support the Company's operations during the restructuring process [2]. Group 2: Sale and Investment Solicitation Process - The Court has approved a Sale and Investment Solicitation Process (SISP) to enable interested parties to submit proposals for the best possible transaction for Colabor and its stakeholders [3]. Group 3: Management Changes - Mr. Marc-Antoine Daoust has been appointed as Chief Financial Officer, succeeding Mr. Yanick Blanchard, who will now serve as Chief Restructuring Officer [4]. Group 4: Company Overview - Colabor is a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [7].

Core Viewpoint - Colabor Group Inc. and its subsidiaries are seeking creditor protection under the Companies' Creditors Arrangement Act (CCAA) due to financial difficulties and are initiating a formal sale and investment solicitation process (SISP) to explore potential transactions [1][2]. Group 1: CCAA Application and SISP - The company is applying for an initial order to protect itself from creditors and to facilitate a SISP, allowing interested parties to submit proposals for the best possible transaction [2]. - The application includes a request for a stay of proceedings against the company and its subsidiaries, as well as interim debtor-in-possession (DIP) financing from major banks to support operations during the restructuring [2]. Group 2: Financial Obligations and Trading Status - The announcement follows a previous disclosure that the company failed to meet its obligations to provide non-binding letters of intent for refinancing and raising at least $15 million in equity by December 15, 2025 [3]. - Trading of the company's common shares on the Toronto Stock Exchange (TSX) has been halted, and the company is under delisting review due to its financial situation [4]. Group 3: Company Overview - Colabor is a distributor and wholesaler of food products serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [5].

Core Insights - Apollo-managed funds have agreed to acquire a majority stake in Prosol Group, a leader in fresh food retail in France, from Ardian, with existing shareholders and management reinvesting alongside Apollo [1][3] - Prosol operates nearly 450 stores in France under brands such as Grand Frais and Fresh, focusing on fresh, quality products and a vertically integrated supply chain [2][8] - The investment is expected to support Prosol's growth ambitions both in France and internationally, leveraging Apollo's extensive retail expertise [3] Company Overview - Prosol, founded in 1992, has established a strong customer base through its proprietary supply chain and high-quality product offerings [2][6] - The company operates under multiple retail brands, including Grand Frais, Fresh, La Boulangerie du Marché, mon-marché.fr, BioFrais, and Banco Fresco in Italy [2][8] - Prosol's model emphasizes long-term partnerships with producers, in-house expertise, and a dedicated logistics network to ensure product quality and freshness [7] Investment Details - The transaction is subject to regulatory approvals and is expected to close in Q2 2026 [4] - Apollo has a successful track record in private equity, particularly in the retail and consumer sectors, with approximately €14 billion invested in French companies [3][5]

Core Insights - Colabor Group Inc. reported a significant increase in sales for Q3 2025, with a 31.1% rise to $212.5 million compared to $162.0 million in Q3 2024, driven by distribution activities and inflation effects [8][19] - The company experienced a net loss of $74.4 million from continuing operations, a stark contrast to net earnings of $1.2 million in the same quarter of the previous year, primarily due to an impairment charge on goodwill [21][8] - Kelly Shipway has been appointed as the new President and CEO, succeeding Louis Frenette, as part of a structured succession plan aimed at enhancing customer experience and profitability [3][5][9] Financial Performance - Adjusted EBITDA decreased to $5.8 million, representing a margin of 2.7% of sales, down from $9.5 million and 5.9% in Q3 2024 [20][8] - Cash flow from operating activities was negative at $(7.7) million for Q3 2025, compared to $9.9 million in Q3 2024, reflecting increased working capital utilization [25][8] - Net debt rose significantly to $112.1 million from $47.8 million at the end of 2024, attributed to the acquisition financing and increased credit facilities [26][8] Strategic Developments - The company is in the process of integrating Alimplus' activities, with site closures planned for Drummondville and Anjou by the end of November 2025 and January 2026, respectively [12][18] - A forbearance agreement with lenders has been extended until January 30, 2026, requiring liquidity maintenance and a minimum trailing twelve-month EBITDA [29][8] - The company aims to stabilize its capital structure and reduce debt while focusing on the successful integration of Alimplus to enhance growth and profitability [28][8]

Core Insights - Colabor Group Inc. reported a net loss of $2.3 million for Q2 2025, a significant decline from net earnings of $1.7 million in Q2 2024, primarily due to decreased adjusted EBITDA and increased operational costs [4][12][14] - The company experienced a 5.1% increase in sales, reaching $169.5 million compared to $161.3 million in the same quarter of the previous year, driven by the acquisition of Alimplus Inc. and organic growth from major accounts [7][10] - Adjusted EBITDA fell to $5.4 million, representing a margin of 3.2%, down from $9.7 million and 6.0% in Q2 2024, attributed to lower gross margins from a renewed supply agreement [11][14] Financial Performance - Sales from continuing operations for the 12-week period were $169.5 million, up from $161.3 million in 2024, while for the 24-week period, sales were $301.2 million compared to $292.5 million in 2024 [4][13] - Adjusted EBITDA for the 12-week period was $5.4 million (3.2% margin) compared to $9.7 million (6.0% margin) in 2024, and for the 24-week period, it was $7.6 million (2.5% margin) compared to $14.6 million (5.0% margin) in 2024 [11][14] - Cash flow from operating activities decreased to $4.5 million for the 12-week period and $10.7 million for the 24-week period, down from $5.0 million and $16.7 million in 2024, respectively [15] Debt and Financial Position - As of June 14, 2025, net debt increased to $97.3 million from $47.8 million at the end of 2024, primarily due to the acquisition financing [16] - The financial leverage ratio rose to 4.3x, up from 2.4x at the end of 2024, indicating increased reliance on debt [4][6] Recent Developments - A cybersecurity incident was identified on July 20, 2025, impacting the company's internal IT systems [3] - The acquisition of Alimplus Inc. is expected to enhance growth and market position, with a six-year distribution agreement signed to serve Groupe Mayrand Alimentation inc. [8][9] - The company aims to improve profitability and prioritize debt reduction in the second half of 2025 [18]