Friday , January 15 2021

Louis Garneau avoids the gap with a loan from Quebec

The Quebec government comes to the aid of Louis Garneau and grants a $ 5 million loan to the retailer to support a stimulus plan of around 20 million dollars, has learned The newspaper.

According to public documents, it is the Louis Garneau Sports 5.0 entity that will receive the loan from a fund administered by Investissement Québec (IQ).

In recent months, the owner of the company, Louis Garneau, had confirmed that he wanted to rebound thanks to Quebec capital.

Recall that in March, the company specializing in bicycles was forced to go under the protection of the Bankruptcy and Insolvency Act due to financial difficulties.

Louis Garneau Sports’ debts amounted to $ 28.1 million and those of the Sugoi Global division to $ 8 million. It was not possible to discuss yesterday with the person in charge of this file at Raymond Chabot.

For his part, businessman Louis Garneau preferred not to comment, confirming that an announcement will be made next week.

Initially, talks with its new investors, whose names have not yet been released, were due to end in mid-November.

And the Caisse?

In the spring, the Ministry of the Economy told the Newspaper that he would assess the possibility of financially supporting the former professional cyclist saying that he “has done a lot for Quebec”.

Yesterday, the Minister of the Economy, Pierre Fitzgibbon, confirmed the granting of the loan of $ 5 million. However, he preferred not to reveal the names of the other investors and he did not want to comment on whether the Caisse de depot et placement du Québec was also going to be part of the adventure.

“Honestly, we liked what we saw in terms of the business plan. There are going to be changes that are going to be made. It is a company that I respect a lot, ”said Mr. Fitzgibbon, ensuring that he was guaranteed that the head office would remain in Quebec.

– With the collaboration of Philippe Langlois

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