TORONTO — Canadian drycleaning giant DoveCorp Enterprises — parent of more than 100 drycleaning and commercial-laundry plants under Dove, Cadet, Meena and other names — has filed for bankruptcy protection.
Publicly traded DoveCorp shares sank to 2.5 cents on Canada’s TSX Venture Exchange following the announcement, down from 25 cents six months ago. Dove filed for bankruptcy July 12, two days after announcing that the United Food & Commercial Workers union would be certified as the bargaining agent for plant workers.
Dove says it plans to restructure and stay in business, and may court buyers. An unnamed lender will provide capital under a Debtor-in-Possession agreement to help it continue operations through the restructuring period.
“The company anticipates that the [bankruptcy] process will provide it with the time and legal protection necessary to complete a process that will include a consideration of all restructuring alternatives, including a marketing effort for the sale of its business,” according to a statement from the company.