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Alcanna announces agreement to acquire 28 Solo Liquor stores, all trademarks and brand

Christian Fernsby ▼ | May 27, 2019
Alcanna announced that the Canadian Liquor Retailers Alliance Limited Partnership, which Alcanna owns approximately 71% of, has entered into an agreement with FTI Consulting Canada in its capacity as court-appointed receiver and manager of the assets, properties and undertakings of Solo Liquor Stores and Solo Liquor Holdings.
Solo Liquor
Acquisition   Solo Liquor
Under the terms of the agreement, the Alliance will acquire the underlying assets of twenty-eight (28) stores currently operating as Solo Liquor, three (3) additional leased locations that have not yet been opened, the “Solo Liquor” brand and related trademarks in exchange for $12.4 million plus inventory estimated at $3.4 million.

The acquisition, which will be funded by the Company’s existing credit facilities, is anticipated to close in late June 2019.

Alcanna and the Alliance analysed each of the approximately 90 Solo locations currently operating, recently closed or with unconditional leases and selected the 28 operating stores and 3 leases which best fit the existing network of Ace and Liquor Depot stores.

Twenty-two (22) of the twenty-eight (28) stores being acquired were opened for a full year in 2017, which was the last full year of operations before Solo encountered financial and operational difficulty, and reported total sales of approximately $84.5 million and $5.8 million of in-store/4-wall EBITDA in that year.

The completion of the transaction is subject to customary conditions for a transaction of this nature including, amongst other things, the Court granting an approval and vesting order transferring the assets that are the subject of the Purchase Agreement prior to June 30, 2019.

Alcanna is one of the largest private sector retailers of alcohol in North America and the largest in Canada by number of stores operating 236 locations in Alberta, British Columbia and Alaska.