Peace Bridge Duty Free Inc., the Fort Erie-based operator of a duty-free retail business at the Canada-U.S. border, was placed in receivership on April 23, 2025, on application by RBC, which was owed approximately $3.3 million. The receivership follows years of financial difficulties, including rental arrears to its landlord, the Peace Bridge Authority, that grew from $5.9 million in 2021 to claims of up to $17 million by 2025, alongside unpaid court costs exceeding $1 million. Despite a forbearance period and repeated adjournments to allow settlement efforts with the landlord, the debtor failed to remedy defaults, satisfy financial covenants, or present a viable repayment plan. Notably, concerns arose late in the proceedings about whether the appointment of a receiver could cause the store’s federal duty-free licence to be suspended, but the court found that the issues could not outweigh the creditors’ rights. MSI Spergel was appointed receiver. Counsel is Aird & Berlis for the applicant, Blaney McMurtry for the company, Thornton Grout Finnigan for the receiver and Koskie Minsky for the employees and certain others.
From Insolvency Insider
