Western Grocer Serving the industry since 1916
Wallace & Carey Inc. has filed for creditor protection, citing challenges related to the COVID-19 pandemic, labour shortages and the decline in tobacco sales.
The Calgary-based family-owned distribution company counts among its 7,000 customers convenience stores across Canada, including 7-Eleven and Greenergy. It has a fleet of 120 leased trucks and trailers and leases warehouses in nine cities across B.C., Alberta, Manitoba, Saskatchewan and Ontario. The company employs about 650 and is a critical supplier to some of Canada’s most remote communities. In addition, Wallace & Carey owns and operates Loudon Bros. Ltd., a distributor servicing Northwestern Ontario, which has 500 customers.
In 2021, Wallace & Carey celebrated 100 years in business.
The company tried to address its financial challenges by streamlining shipping routes and renegotiating contracts, however that wasn’t enough to meet its current debts.
Wallace & Carey:
• had collective liabilities of more than $184-million as of June 19
• is in default of a $44.4-million debt owed to Canadian Imperial Bank of Commerce for a credit agreement
• reports a news loss of $12.5-million in 2022, up from $7 million in 2021, according to is most recent audited statement
• owes the government $26-million in deferred taxes related to the sale of tobacco.
Tobacco sales have been falling for decades: From 2021 to 2022, for instance, the company’s revenue from tobacco declined by $162 million.
Part of the decline in tobacco sales is due to a decrease on consumption and part is due to a rise in contraband sales, which is also impacting c-store operators across Canada.
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