IS ITRAVEL2000 ON THE VERGE OF BANKRUPTCY

Posted on 08/25/2016 | About Toronto, Ontario

Just last month Red Label Holdings Inc., parent company of TravelBrands and Redtag.ca, announced that it had reached an agreement to acquire itravel2000. Now it seems the once highly successful itravel2000 has filed an NOI (notice of intent) which is generally considered a precursor to bankruptcy. Richter is the proposal trustee.

The NOI was filed on August 10.
Red Label Holdings, the parent company of Travel Brands (which recently exited CCAA protection) and Redtag.ca, announced in mid July that had reached an agreement to acquire iTravel 2000.
When Red label made its announcement, vice president, Joe DeMarinis said, “This deal marks a significant milestone for our retail business. itravel2000 has built a trusted brand and loyal client base for over 20 years. With our scale, we have the opportunity to move itravel2000’s business forward even faster.”
“I am pleased to have reached this agreement. We can provide itravel2000 with more options, differentiated products and services created specifically for the Canadian market.”
Yesterday DeMarinis would only confirm that the company has an agreement to purchase itravel2000.
While an NOI can indicate an upcoming bankruptcy, it can also be used to negotiate with suppliers into accepting financial compromises.